Mortgage Guidelines After Bankruptcy On Home Purchase


Mortgage Guidelines After Bankruptcy On Home Purchase

This BLOG On Mortgage Guidelines After Bankruptcy On Home Purchase Was UPDATED On November 17th, 2018

There are mandatory waiting period after bankruptcy to qualify for government and conventional loans.

  • Gustan Cho Associates offers non-qm loans
  • Mortgage Guidelines After Bankruptcy on non-qm loans does not require any wait period after bankruptcy and/or housing events
  • However, 10% to 20% down payment is required. Amount of down payment is dependent on borrowers credit scores
  • Mortgage rates are determined by borrowers credit scores and down payment

Hiring Real Estate Attorneys

Hiring real estate attorneys is not a common practice in most states.

However, most home buyers and sellers in Illinois normally hire real estate attorneys to represent them on real estate transactions:

  • A sharp attorney will have a keen eye in making sure their clients is protected on their real estate transactions
  • In the event the subject property has flaws such as foundation damage, mold, or other defects that was not noticed during the first walk through, they should be protected prior to closing
  • Real estate attorneys will see that the home buyer has an out
  • Buyers will want to recover their earnest money in the event the mortgage loan does not go through
  • The field of law is so broad and complex
  • Home buyers should retain only attorneys whose practice is concentrated in real estate law
    • Not general practicioners who are jack of all trades
  • For example, buyers do not want a divorce attorney or corporate attorney to represent them on their real estate closing

Real Estate Attorneys

Gustan Cho Associates will not endorse or recommend a law firm or real estate attorney unless we have done business with them.

  • Home buyers and homeowners can choose any real estate attorney of their choice
  • It is always recommended that clients feel comfortable with the law firm they decide to represent their legal transaction

Attorneys Who Really Cares For Clients

A real estate attorney should not just be an agent who just shows up at the real estate closing but one who has best interest of their clients:

  • Attorneys should always be there when issues come up during the mortgage approval and real estate purchase and/or selling process
  • The Gustan Cho Team recommends real estate attorneys, agents, and other professionals to our clients

Qualifying For Mortgage After Bankruptcy

Home Buyers can qualify for mortgage after bankruptcy:

  • 2 year waiting period to qualify to qualify for a FHA Loans after discharge of Chapter 7
  • One year into a Chapter 13 Repayment Plan to qualify for VA and/or FHA Home Loans
  • No waiting period after a Chapter 13 Bankruptcy discharge date to qualify for FHA and VA Loans
  • 4 year waiting period to qualify for a Chapter 7 Bankruptcy discharge date to qualify for Conventional Loans
  • Two year waiting period to qualify after Chapter 13 discharged date to qualify on Conventional Loans
    • Four year wait period after Chapter 13 dismissal date
  • Four year waiting period to qualify for a Conventional Loan with a prior mortgage part of bankruptcy from discharged date of bankruptcy
  • The foreclosure needs to be be finalized

If you are trying to qualify for a Bankruptcy with no overlays contact us at Gustan Cho Associates at Loan Cabin Inc. at 262-718-8151 or text for faster response. Or email us at gcho@gustancho.com.

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