Can You Get Mortgage Approval With Late Payments In Past 12 Months?

This BLOG On Mortgage Approval With Late Payments In Past 12 Months Was UPDATED On October 30th, 2017

Getting A Mortgage Approval With Late Payments:

Mortgage loan underwriters frown upon the following:

  • Late payments
  • Open collections
  • Charge offs
  • Bank overdrafts
  • Judgments
  • Tax liens

A mortgage loan borrower can get a mortgage loan approval with the following derogatory items:

  • Prior bankruptcies
  • Foreclosures
  • Deed In Lieu Of Foreclosure
  • Outstanding collections
  • Outstanding Charge Offs
  • Bank overdrafts
  • Judgments
  • Tax liens
  • Late payments

However, mortgage loan underwriters do not want to see any overdrafts and/or late payments in the past 12 months.

  • Mortgage Approval With Late Payments in past 12 months is almost impossible.
  • You can get a mortgage approval with late payments with the late payments have been seasoned for at least 12 months.
  • Unfortunately, late payments happen either by mistake or by other reasons. 
  • There are mortgage lenders who will not approve a mortgage loan application if the mortgage loan borrower has had recent late payments in the past 12 months. 
  • Fortunately, I can help those mortgage loan applicants who have had one or two late payments in the past 12 months.

Some Quick Fixes On Late Payments And Qualifying For Mortgage Approval With Late Payments

If you have one or two recent late payments with a creditor, see if you can contact the creditor and ask them sincerely if they can give you a one time reprieve in having that late payment removed off your credit report.

  • Mortgage borrowers who have had a timely payment history with the particular creditor who has reported consumers 30 days late and ask them if they can give a one time chance.
  • Consumers will be surprised on how many creditors will remove the late payment history off credit report. 
  • Borrowers who have a history of making late payments, the chances will probably not be good.
  • However, mortgage borrowers who had a history of timely payments, the creditor can expunge the late payment history. 
  • If the customer service representative says no, ask to speak with a supervisor. 
  • If the creditor agrees and removes the late payment history off the credit report, the late payment deletion will greatly boost up credit scores as well.

Is It Possible To Get Mortgage Approval With Recent Late Payments?

The right rule of thumb is to wait a minimum of 6 months of timely payments if there consumers had a recent late payment on credit report.

  • However, those who are current on the late payments and have a good letter of explanation as of why they were late, then it is possible to still get a mortgage loan approval without the 6 month timely waiting period. 

The Gustan Cho Team at USA Mortgage are direct lenders with no lender overlays on government and conventional loans. We are licensed in multiple states and just go off Automated Underwriting System Findings.

Mortgage borrowers who have recent late payments on credit report and need to qualify for a mortgage loan, please contact us at 262-716-8151 or email us at gcho@usa-mortgage.com.

Gustan Cho NMLS ID # 873293

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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