Mortgage Loan Programs For Home Buyers And Homeowners

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This BLOG On Mortgage Loan Programs For Home Buyers And Homeowners Was PUBLISHED On August 29th, 2019

Mortgage Loans Program (1)

The Gustan Cho Team at Loan Cabin Inc. is a direct lender with no mortgage overlays on government and conventional loans.

Gustan Cho Associates Mortgage Group at Loan Cabin Inc. is also a correspondent lender on  the following:

  • non-QM loans
  • bank statement loans for self-employed borrowers
  • condotel financing
  • non-warrantable condos
  • alternative financing programs
  • We work with real estate agents and other referral partners
  • Our Team get daily inquiries from realtors and other real estate/lending professionals on alternative and specialty mortgage loan programs we offer our home buyers and homeowners
  • Over 75% of our borrowers are folks who either got a mortgage loan denial by another lender or just could not qualify with other lenders due to their lender overlays
  • We just go off Automated Underwriting System Approval and have zero overlays on government and conventional loans

In this article, we will cover and discuss Mortgage Loan Programs For Home Buyers And Homeowners.

Mortgage Loan Programs With No Lender Overlays

what are Mortgage Loan Programs With No Lender Overlays

Gustan Cho Associates at Loan Cabin Inc. is a national lender with no mortgage overlays on government and conventional loans. Loan Cabin Inc., headquartered in Lombard, Illinois, was founded in 2017 by CEO/President Massimo Ressa with two main goals in mind:

  1. Be the BEST of the VERY BEST in customer service
  2. Be able to do loans where other lenders cannot

Gustan Cho Associates Mortgage Group is the national consumer direct division of Loan Cabin Inc. Our goals and mission became a reality.

  • Today, Loan Cabin Inc. is a direct lender with no overlays on government and conventional loans
  • We took Loan Cabin Inc. to be the largest five-star direct mortgage lender 
  • Our no overlay business model works!!!
  • We are now extending Gustan Cho Associates Mortgage Group at Loan Cabin Inc. business model to all 50 states

Many homebuyers, homeowners, realtors, and even loan officers do not realize that a company like Gustan Cho Associates at Loan Cabin Mortgage exists.

Servicing Our Clients

how work Servicing Our Clients

All of our pre-approvals are full credit conditional mortgage loan approvals that is fully underwritten and signed off by our mortgage underwriters.

  • This is the reason we close 100% of our mortgage borrowers
  • Unlike other mortgage companies, our loan officers do not issue pre-approval letters
  • Our mortgage underwriters do

Our Mortgage Programs At Gustan Cho Associates

what are Our Mortgage Programs At Gustan Cho Associates

Here Is The Services The Gustan Cho Team at Loan Cabin Inc. Offers for our borrowers, homeowners (refinance), real estate agent partners, and real estate managing brokers:

  • Available 7 days a week including evenings, weekends, holidays
  • Clients can apply online, 24/7
  • Once mortgage client applies online, one of our licensed loan officers will run a credit check
  • We then submit mortgage application and credit report to our Automated Underwriting System for an automated approval
  • We gather documents required by the borrower and the file gets processed and submitted to underwriting
  • If we do not get an automated approval, we can see if it is eligible as a manual underwriting
  • Borrowers with bad credit, we will work in getting credit issues resolved
  • Unlike other lenders where they tell their borrowers they do not qualify, we prepare borrowers get ready for a mortgage loan approval as soon as possible
  • There are no costs or fees associated with us helping borrowers with credit issues and/or debt to income issues
  • All calls promptly returned
  • Available evenings, weekends, and holidays

All Of Our Pre-Approvals Are TBD Property Underwriting Approvals

what are All Of Our Pre-Approvals Are TBD Property Underwriting Approvals

100% mortgage approvals after submitting a formal mortgage application

  • We do submit a mortgage application until we are certain that it will get approved by our mortgage underwriters
  • All mortgage case scenarios that are uncertain gets discussed with our underwriting help desk prior to submission 
  • Borrowers who get turned down by another mortgage lender, please contact us at The Gustan Cho Team at Loan Cabin Inc.
  • Chances it got turned down due to mortgage lending overlays
  • Most mortgage lenders have overlays
  • I can help get a 3.5% residential mortgage loan with a credit score of 580
  • Most mortgage lenders require a 620 or 640
  • This is because they have FHA Lender Overlays on credit scores
  • I have closed on many loans that other  mortgage lenders could not do
  • We are direct lenders and also correspondent mortgage lenders

Reasons Why Borrowers Get Denied By Other Lenders

what are Reasons Why Borrowers Get Denied By Other Lenders

We help many borrowers who were turned down by other lenders due to the following:

  • Overlays
  • Outstanding collections
  • Outstanding charge off accounts
  • Recent late payments
  • Judgments
  • Tax liens
  • Overdrafts
  • High student loans
  • High debt to income ratio
  • Will qualify the home buyer and once fully qualified, borrowers can rest assured that client’s mortgage loan will close

New Mortgage Loan Programs

What are New Mortgage Loan Programs

FHA INSURED MORTGAGE LOANS

500 to 580 Scores: 

  • Borrowers with credit scores between 500 to 580 scores require 10% down payment plus compensating factors on FHA Loans

3.5% Down Payment Minimum Credit Score Requirements: 

  • For a home buyer to qualify for a 3.5% down payment FHA insured mortgage loan, the minimum credit score required is 580
  • However, borrowers with credit scores between 580 and 620, the maximum debt to income ratios are 31% front end debt to income ratio and 43% back end debt to income ratio
  • Higher debt to income ratio borrowers needs their credit scores boosted to over 620 where we can help
  • The front debt to income ratio caps boosts up to 46.9% DTI and the back end caps at 56.9% if credit scores are at least 620
  • No mortgage lender overlays
  • With automated approval per DU FINDINGS, that is final approval

Non-occupied co-borrowers:

  • Non-occupied co-borrowers allowed on FHA insured mortgage loans
  • Sellers concession towards a buyer’s closing cost of 6% maximum is allowed on FHA Loans and USDA Loans
  • VA Loans allow for 4% sellers concessions

Prior bad credit: 

Many people have had prior bad credit such as the following:

  • Bankruptcy
  • Foreclosure
  • Charge offs
  • Collection accounts
  • Tax liens
  • Judgments
  • Overdrafts
  • Other credit issues
  • Outstanding collections and charge off accounts do not have to be paid off
  • Borrowers with judgments or tax liens need a payment agreement and three months timely payment history
  • As long as they have not been late on  bills for the past six months and have income, borrowers should be able to get approve/eligible per AUS and qualify with us

Bankruptcy And Prior Housing Event:

Home Buyers can qualify for mortgage after bankruptcy and prior housing event:

  1. Foreclosure
  2. Deed In Lieu Of Foreclosure
  3. Short SaleHousing Event is defined as follows:

Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure, Short Sales are allowed:

  • However, need to adhere to federal mortgage lending guidelines
  • Need to meet mandatory waiting period requirements to qualify for government and conventional loans
  • There is a two year waiting period for those who had a prior bankruptcy to qualify for VA Loans
  • Two year waiting period to qualify for FHA Loans
  • The two year waiting period time clock starts from the date of the bankruptcy discharge
  • There is a three year waiting period for those who have had a foreclosure, deed in lieu of foreclosure, or short sale to qualify for FHA Loans
  • The three year waiting period starts from the recorded date of the foreclosure and/or deed in lieu of foreclosure
  • This is the date where homeowners name has been transferred out into the mortgage lender’s name
  • On short sales, the 3 year waiting period starts the date of the short sale that is reflected on the HUD’s settlement statement to qualify for FHA Loans
  • VA has a two year waiting period after foreclosure, deed in lieu of foreclosure, short sale to qualify for VA Loans
  • There is a four year waiting period after Chapter 7 Bankruptcy, deed in lieu of foreclosure, short sale to qualify for Conventional Loans
  • There is a seven year waiting period to qualify for Conventional Loans after a regular foreclosure

Manual Underwriting On FHA Loans And VA Loans:

  • The Gustan Cho Team at Loan Cabin Inc. welcome manual underwriting on VA Home Loans and FHA Loans
  • For those mortgage loan borrowers who cannot get a approve eligible per automated FINDINGS, manual underwriting is available

Gift Funds:

  • All down payment and closing costs can be gifted by a family member
  • A gift letter needs to be signed by the donor and the transfer of funds from the donor’s account to the recipient’s account needs to be sourced

 Fast approvals and closings: 

  • 24-hour mortgage underwrites and approvals and closings in less than 30 days
  • Borrowers who are transferring their mortgage loan to us and  need a rush closing, we can close mortgage loans in 2 weeks as long as the borrower cooperates and we order a rush appraisal on the subject property

VA Home Loans With No Overlays

What are VA Home Loans With No Overlays

The Gustan Cho Team at Loan Cabin Inc. has no mortgage lender overlays on VA Loans.

  • There is no credit score requirements nor debt to income ratio caps on VA Loans
  • Most lenders require a 620 to 640 credit scores for veteran borrowers
  • However, this is not VA Guidelines on credit scores BUT Overlays on VA Loans by that particular lender
  • Same with debt to income ratios
  • VA Loans do not have debt to income ratio requirements
  • The Gustan Cho Team at Loan Cabin Inc. recently closed a VA Loan with a 587 credit score and 58% debt to income ratio
  • We just go off Automated Underwriting System Approval Findings
  • Veteran Borrowers who gets an approve/eligible per AUS FINDINGS can rest assured that we will close their VA Loan as long as they can meet conditions of AUS
  • To get an approve/eligible per AUS FINDINGS, a 580 credit score is recommended

VA Home Loans And FHA Loans During And After Chapter 13 Bankruptcy

what are VA Home Loans And FHA Loans During And After Chapter 13 Bankruptcy

Majority of VA Lenders WILL NOT cater to borrowers who are in an active Chapter 13 Bankruptcy Repayment Plan or borrowers who recently got discharged on a Chapter 13 Bankruptcy.

  • Most lenders will require that borrowers wait 2 years from the discharged date of their Chapter 13 Bankruptcy
  • Again, this is not a VA Guidelines nor is it HUD Guidelines
  • The Gustan Cho Team at Loan Cabin Inc. are folks who are in a current Chapter 13 Bankruptcy or just got a Chapter 13 Bankruptcy discharge
  • Borrowers needs to be in a Chapter 13 Repayment Plan for at least 12 months to qualify for both VA Home Loans and FHA Loans
  • There is no waiting period after Chapter 13 Bankruptcy discharged date to qualify for VA and/or FHA Loans

Conventional Mortgage Loan Programs With No Mortgage Insurance And No Overlays

what are Conventional Mortgage Loan Programs With No Mortgage Insurance And No Overlays

The Gustan Cho Team at Loan Cabin Inc. offers conventional mortgage loan programs with no mortgage insurance.

It is called Lender Paid Mortgage Insurance and it is available for conventional homebuyers who can put at least 5% down payment.

  • We have no mortgage lender overlays on conventional mortgage loan programs
  • As long as mortgage loan applicants get an approve eligible per automated FINDINGS, they  are approved
  • Borrowers can be ready to close once we process and underwrite mortgage application

Mortgage Part Of Chapter 7 Bankruptcy On Conforming Mortgage Loan Programs

what is Mortgage Part Of Chapter 7 Bankruptcy On Conforming Mortgage Loan Programs

There are times where borrowers may qualify for conventional loans but not government loans.

  • Borrowers who had mortgage part of Chapter 7 Bankruptcy can qualify for conventional loans after four years from the discharged date of the Chapter 7 Bankruptcy
  • The recorded date of the foreclosure, deed in lieu of foreclosure, or date of short sale does not matter on Conventional Loans with mortgage part of bankruptcy
  • However, the housing event needs to have been finalized
  • The mortgage cannot have been re-affirmed

Refinance Mortgage Loan Programs

what are Refinance Mortgage Loan Programs

VA and FHA Streamline Mortgage Loan Programs

  • With No Income
  • No Credit
  • No Appraisals

Streamlines are fast track and normally we can close VA Streamline Refinance and FHA Streamline Refinance Mortgage Loans in two weeks. The Gustan Cho Team at Loan Cabin Inc. also offers escrow advances to homeowners so they do not have to come up with any money at the closing of their refinance loan.

Homeowners thinking of refinancing current FHA mortgage loan into a conventional lender paid  mortgage insurance mortgage loan to eliminate hefty FHA Annual Mortgage Insurance Premium, The Gustan Cho Team at Loan Cabin Inc. offers lender paid mortgage insurance conventional loan where there is no mortgage insurance on conventional loans.

Government Conventional And Non-QM Mortgage Loan Programs

what are Government Conventional And Non-QM Mortgage Loan Programs

  • FHA Loans with zero overlays
  • VA mortgage loans with no overlays
  • Manual Underwriting on FHA and VA Loans
  • No Waiting Period During And After Chapter 13 Bankruptcy
  • No Waiting Period After Timeshare Foreclosure
  • USDA mortgage loans with no mortgage overlays
  • FHA 203K mortgage loans
  • Portfolio Mortgage Loans
    • Condotel financing
    • Non-warrantable
  • Condominium mortgage loans
  • Non-QM Loans where no waiting period after foreclosure, deed in lieu of foreclosure, short sale, bankruptcy

Mortgage Borrowers who need to qualify for government and/or conventional loans with a direct lender with no overlays, please contact The Gustan Cho Team at Loan Cabin at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are a full-service direct lender licensed in multiple states with zero overlays on government and conventional loans. Real Estate Agents who want to co-brand with The Gustan Cho Team at Loan Cabin Inc., please contact us at 262-716-8151 or email us at gcho@loancabin.com. We just do not close loans, but close loans on time. Many home buyers, loan officers, and other real estate agents do not realize that a company like Gustan Cho Associates at Loan Cabin Inc. exists. We offer top of the line marketing programs for all of our realtor partners.

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