Mortgage Loan Programs During And After Bankruptcy

This Article Is About Mortgage Loan Programs During And After Bankruptcy

Gustan Cho Associates is a mortgage company licensed in multiple states with multiple Mortgage Loan Programs During And After Bankruptcy and Foreclosure. GCA Mortgage has a national reputation for being able to do loans other lenders cannot do due to our no-lender overlays on government and conventional loans business model. FHA and VA loans are the only two loan programs that allow homebuyers and homeowners to purchase and/or refinance mortgages during Chapter 13 Bankruptcy repayment plan with bankruptcy approvalGustan Cho Associates are mortgage bankers, correspondent lenders, and have the ability to broker non-QM and alternative mortgage loan programs.

Gustan Cho Associates And Its Mortgage Loan Programs During And After Bankruptcy And Foreclosure

Mortgage Loan Programs During And After Bankruptcy And Foreclosure

The team at Gustan Cho Associates is licensed in multiple states with no lender overlays on government and conventional loans. GCA Mortgage has a national reputation for being able to originate and fund government and conventional loans other lenders cannot. Gustan Cho Associates is a mortgage banker, correspondent lender, and mortgage broker. This is why we are often referred to as a one-stop-shop. if Gustan Cho Associates does not have the mortgage loan program you are looking for, then chances are no other lender will have it.

Mortgage Company Licensed In Multiple States: Experts In Mortgage Loan Programs During And After Bankruptcy

Gustan Cho Associates is widely known for being able to help borrowers get qualified and approved for a home mortgage during the Chapter 13 Bankruptcy repayment plan. The bankruptcy does not need to get discharged to get a home mortgage during Chapter 13 Bankruptcy repayment plan. Bankruptcy trustee approval is required. However, no need to worry.

Out of tens of thousands of Chapter 13 Bankruptcy FHA and/or VA loans we have qualified and approved, we have never had a bankruptcy trustee not approve a home mortgage and purchase during the Chapter 13 Bankruptcy repayment plan. GCA Mortgage can help borrowers in an active Chapter 13 Bankruptcy repayment plan help bankruptcy trustee approval. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders due to lender overlays.

Qualifying For A Mortgage After A Bankruptcy And/Or Foreclosure

You can qualify for a mortgage during and after bankruptcy. However, there are mandatory waiting period requirements after bankruptcy on government and conventional loans. The waiting period and lending guidelines are different between Chapter 7 versus Chapter 13 bankruptcy. GCA Mortgage offers non-QM loans after bankruptcy and/or foreclosure with no waiting period requirements with a 30% down payment.

There is no waiting period after bankruptcy and/or a housing event if you have a 30% down payment on a home purchase and/or at least a 70% loan to value in your home if you are looking to refinance. However, non-QM lenders require bankruptcies to be discharged and will not do a Chapter 13 repayment borrower without the Chapter 13 Bankruptcy being discharged. Many people recover sooner than others after bankruptcy and/or foreclosure. The team at Gustan Cho Associates has helped thousands of folks get credit scores to over 700 FICO in less than one year after the Chapter 7 Bankruptcy discharge date.

Difference Between Chapter 7 Versus Chapter 13 Bankruptcy

Chapter 7 Versus Chapter 13 Bankruptcy

The two most common types of bankruptcies in the United States are the following:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy

Chapter 7 Bankruptcy is the bankruptcy of choice. The bankruptcy gets discharged 90 days after filing. Chapter 7 Bankruptcy is called total liquidation bankruptcy and there is an income cap. Check the Chapter 7 Bankruptcy means test to see if you qualify for the Chapter 7 Bankruptcy income cap. Chapter 7 Bankruptcy benefits borrowers who are not employed or have little to no income with a job that is not stable. It also benefits borrowers who own little to no assets.

Consumers who have assets and full-time good-paying jobs but are drowning in debt can file Chapter 13 Bankruptcy. Filing Chapter 13 Bankruptcy protects the petitioner’s assets from repossession. Chapter 13 Bankruptcy is called debt restructuring over a period of five years. A bankruptcy trustee is assigned to the petitioner. A percentage of the person’s gross monthly income is set aside to pay the creditors. The monthly payments are distributed among the filer’s creditors for normally a period of five years or a period of 60 months. Terms can range anywhere between 36 to 60 months. People who file Chapter 13 Bankruptcy can qualify for an FHA and/or VA loan after the petitioner makes 12 monthly timely payments. It needs to be manual underwriting. Only FHA and VA loans allow manual underwriting. The VA and FHA Agency Manual Mortgage Guidelines are exactly the same.

Qualifying For Chapter 13 Bankruptcy Mortgage Loan Programs During And After Bankruptcy

FHA and VA loans are the only two loan programs that allow borrowers to qualify for a mortgage while in the Chapter 13 Repayment plan. There are no waiting period requirements on FHA and VA loans after the Chapter 13 Bankruptcy discharged date under manual underwriting.

After the petitioner successfully pays their creditors for the period of the term, the balance of the debts gets discharged. What a bankruptcy discharge means is all remaining debts owed to creditors by the petitioner are discharged and no longer have to be paid. The petitioner is now debt-free and restart and rebuilds their financial life from ground zero. There are no waiting period requirements by mortgage borrowers after the Chapter 13 Bankruptcy discharged date to qualify for an FHA and/or VA loan.

If you want to qualify for an FHA and/or VA loan after the Chapter 13 Bankruptcy discharged date and the discharge has been seasoned for less than 24 months, it needs to be a manual underwrite. You will not get an approve/eligible per automated underwriting system without having it seasoned for two years after Chapter 13 Bankruptcy discharged date. There are no other loan programs other than FHA and/or VA loans that will allow borrowers to qualify for a mortgage while in the Chapter 13 Bankruptcy repayment plan.

Fannie Mae and Freddie Mac require a two-year waiting period requirement after the Chapter 13 Bankruptcy discharged date and a four-year waiting period after the Chapter 13 Bankruptcy dismissal date. USDA loans do not allow borrowers to qualify for a USDA loan during the Chapter 13 bankruptcy repayment plan. The waiting period is three years to qualify for a USDA loan after Chapter 13 and Chapter 7 Bankruptcy discharge date.

Buying Out Chapter 13 Bankruptcy Early

Mortgage borrowers can qualify for an FHA and/or VA loan on both home purchase and refinance mortgage transactions while in an active Chapter 13 Bankruptcy repayment plan. Trustee approval is not a problem. Gustan Cho Associates have qualified, approved, originated, and closed on tens of thousands of FHA and/or VA loans while in Chapter 13 Bankruptcy repayment plan and we had not a single issue with the bankruptcy trustee not approving a home purchase or a refinance transaction while in the Chapter 13 repayment plan. Many homeowners have built tens of thousands of equity during the hot booming housing market in the past few years. Home prices have skyrocketed double digits year after year. The housing boom is expected to continue due to the coronavirus remote job opportunities available throughout the nation and the historic record-low mortgage rates. Many homeowners have plenty of equity in their homes to do a cash-out refinance on an FHA and/or VA loan. Trustee approval will be required. Our team at Gustan Cho Associates can quarterback the trustee approval if your bankruptcy attorney is not familiar with the process. The role of the bankruptcy trustee is to research and make sure the home mortgage is not fraudulent. Bankruptcy trustees will approve a significant cash-out refinance if the petitioner’s intent is to do a Chapter 13 Buyout to end the Chapter 13 Bankruptcy term earlier than the five-year term.

Starting The Mortgage Process While In Chapter 13 Bankruptcy Or After Chapter 13 Bankruptcy Discharged Date With No Waiting Period Requirements

Starting The Mortgage Process While In Chapter 13 Bankruptcy

You have come to the right place at Gustan Cho Associates to qualify for a mortgage during and/or after Chapter 13 Bankruptcy.  The first step is to contact us at 262-716-8151 or text us for a faster response. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Gustan Cho will assign our client to one of our experienced veteran loan officer associates. Your assigned loan officer will analyze and evaluate your situation and the best loan program that is suited to you while in the Chapter 13 Bankruptcy. We will thoroughly review your mortgage loan application, your tri-merger credit report, and your payment history while in the Chapter 13 Bankruptcy repayment plan. We will fully qualify and pre-approve you and go over the terms of your mortgage loan and your ability to repay. We will be reviewing all of the documents you have provided such as your W2s, income tax returns, asset information, and bankruptcy paperwork. After we find you qualified and pre-approved, we will issue a solid pre-approval letter. Gustan Cho Associates has a stellar closing ratio on our pre-approved borrowers coming to the closing table. At 100% is not bad. Gustan Cho Associates has a national reputation of being able to do loans other lenders cannot do. Over 75% of our borrowers are folks that could not qualify at other lenders due to that lender’s overlays. We look forward to working with you and your family.

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