Mortgage One Day Out Of Foreclosure Lending Guidelines

This Article Is About Mortgage One Day Out Of Foreclosure

Housing prices kept on going up like never in history in the 2000s.

  • Real estate was the investment of choice for most Americans
  • A large percentage of American workers had other properties as their choice of investment
  • Many without real estate investor experience had multiple properties
  • Home prices kept on going up year after year
  • Getting qualified and approved for mortgages was a piece of cake
  • No doc and stated income subprime mortgages were the most popular loan program in the country
  • Almost anyone can qualify and get approved for a mortgage
  • Then the 2008 real estate crash and housing meltdown hit the nation
  • The 2008 Great Recession plummeted real estate values nationwide
  • Never in history have real estate values plummeted as much as it did during the 2008 housing crisis and credit meltdown
  • The whole housing and mortgage industry literally collapsed
  • Subprime mortgages were shut down immediately
  • Mortgage giants Washington Mutual and Countrywide Home Loans as well as dozens of others closed their doors overnight
  • Servicing rights of these subprime lenders were acquired by other mortgage servicing companies

In this article, we will discuss and cover qualifying for non-QM mortgages one day out of bankruptcy and/or a housing event. A housing event is defined as a foreclosure, deed in lieu of foreclosure, short-sale.

Buying A Home After Living Through The Historic Foreclosure Rate After The 2008 Financial Crisis

Mortgage One Day Out Of Foreclosure

Millions of homeowners were faced with homes and investment properties that were worth substantially less than what they owed on their mortgage loan balances.

  • Underwater mortgages are when the mortgage loan balance is higher than the market value of the home
  • Millions of Americans turned in the keys to their homes to their lender and either foreclosed, did a deed in lieu of foreclosure, or did a short sale
  • Foreclosure numbers hit historic highs
  • Never in history have so many Americans filed bankruptcy

There are mandatory waiting period requirements to qualify for government and conventional loans after foreclosure, deed in lieu of foreclosure, short sale. However, the waiting period after foreclosure does not start until the deed of the home has been transferred out of the homeowners’ name into the lender’s name. Well, a large percentage of lenders were not doing this. For millions of homeowners, the waiting period did not even start yet after years the home was foreclosed.

Mortgage One Day Out Of Foreclosure Saves The Day For Homebuyers With A Prior Foreclosure

Fortunately, many Americans recovered:

  • Most went on and got jobs, saved money, rebuilt their credit, and are ready to purchase a new home
  • However, there are waiting period requirements to qualify for government and/or conventional loans
  • Millions of Americans  who foreclosed on their homes and/or real estate investment properties ran into problems where their lender did not transfer the deed to the property until many years later
  • Therefore, the waiting period after a housing event did not even start until either a sheriff’s sale and/or a new owner took over the foreclosed home
  • This delay is not having the deed out of their name hurt these people from qualifying for a mortgage due to the waiting period requirements after foreclosure

The good news is Gustan Cho Associates now offers Non-QM Mortgage One Day Out Of Foreclosure And Bankruptcy. There is no waiting period after a housing event. 

What Went Wrong To Trigger The 2008 Housing Meltdown

Many homeowners had teaser rates where their initial rates were low and graduated to a level:

  • Many could no longer afford their mortgage when teaser rates adjusted
  • With the combination of depressed real estate values and teaser rates, many homeowners ended up with underwater mortgages
  • Underwater mortgages are home loans that are higher than the value of their homes
  • This led many to foreclose on their homes or file bankruptcy
  • Many homeowners went through the foreclosure process and foreclosed on their homes
  • Others were offered a deed in lieu of foreclosure and turned keys to their lenders
  • Others had a short sale
  • Lenders have a history of not changing the deed over to the lender’s name after foreclosure and/or deed in lieu of foreclosure until many years later
  • This often hurts home buyers with prior foreclosure and/or deed in lieu of foreclosure
  • Gustan Cho Associates often get borrowers who had a foreclosure years ago but the deed is not yet transferred out of their names
  • This hurts their chances of qualifying for government and conventional loans
  • Government and conventional loans have a mandatory waiting period after foreclosure, deed in lieu of foreclosure, short sale, and bankruptcy
  • The great news is Gustan Cho Associates Mortgage Group has a loan program for Mortgage One Day Out Of Foreclosure

This Mortgage One Day Out Of Foreclosure enables homebuyers to qualify for a mortgage with no waiting period after the housing event. We will discuss Mortgage One Day Out Of Foreclosure Lending Guidelines. Mortgage One Day Out Of Foreclosure is possible at Gustan Cho Associates Mortgage Group with our non-QM loans. Non-QM Loans have no waiting period requirements after foreclosure, deed in lieu of foreclosure, short-sale, and bankruptcy.

Waiting Period Guidelines On Government And Conforming Loans

what are Fannie Mae And Freddie Mac Guidelines On Conventional Loans

Government and Conventional Loans have a mandatory waiting period after foreclosure, deed in lieu of foreclosure, short-sale, and bankruptcy. Here are the minimum waiting period guidelines after bankruptcy and/or housing event:

HUD Waiting Period Guidelines On FHA Loans:

  • There is a two year waiting period after Chapter 7 Bankruptcy to qualify for FHA Loans
  • There is a three year waiting period after Foreclosure, Deed In Lieu Of Foreclosure, Short-Sale to qualify for FHA Loans
  • Borrowers can qualify for FHA Loans one year into a Chapter 13 Bankruptcy Repayment Plan with Trustee Approval

There is no waiting period after the Chapter 13 Bankruptcy discharged date on FHA Loans.

VA Waiting Period Requirements After Bankruptcy And Foreclosure

VA Waiting Period Guidelines On VA Home Loans:

  • There is a two year waiting period after Chapter 7, foreclosure, deed in lieu of foreclosure, short-sale to qualify for VA Loans
  • Borrowers can qualify for VA Loans one year into a Chapter 13 Bankruptcy Repayment Plan with Trustee Approval
  • There is no waiting period after Chapter 13 discharged date to qualify for VA Loans

USDA Waiting Period Guidelines On USDA Loans:

  • There is a three year waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short-sale on USDA Loans

Mortgage One Day Out Of Foreclosure Versus Fannie Mae And Freddie Mac Guidelines On Conventional Loans

Here are Fannie Mae and Freddie Mac Guidelines On Conventional Loans:

  • Four-year waiting period after short-sale and/or deed in lieu of foreclosure
  • Seven-year waiting period after foreclosure
  • Four-year waiting period after Chapter 7 Bankruptcy
  • Four-year waiting period after Chapter 13 Dismissal Date
  • Two-year waiting period after Chapter 13 Discharged Date

Mortgage One Day Out Of Foreclosure Versus Fannie Mae And Freddie Mac Guidelines

What is a mortgage one day after exclusion from non-QM loans

Fannie Mae and Freddie Mac have a unique guideline when it comes to borrowers with a mortgage included in bankruptcy:

  • There is a four-year waiting period after Bankruptcy discharged date if borrowers had a mortgage included in their bankruptcy
  • The date of the foreclosure does not matter but needs to be finalized

The mortgage cannot be re-affirmed after the bankruptcy.

Mortgage One Day Out Of Foreclosure With NON-QM Loans

Homebuyers can qualify for a mortgage one day out of foreclosure and/or bankruptcy with non-QM loans. A 10% to 30% down payment is required. The amount of down payment depends on various factors. The age of the foreclosure, deed in lieu of foreclosure, short sale, or bankruptcy has a lot to do with the down payment requirements. If the housing event and/or bankruptcy is only seasoned less than one year, the borrowers would need 30%. Other factors affecting the down payment are the borrower’s credit scores. Mortgage rates depend on borrowers’ credit scores and down payment. There is no maximum loan limit on non-QM loans. There is no private mortgage insurance required on non-QM loans.

Borrowers who need to qualify for Mortgage One Day Out Of Foreclosure, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

1 Comment
  1. Julie Cunningham

    I have several late payments 24 months ago, but no late payments in the last 12 months. I need to see if I qualify for a mortgage. My current mortgage company approved me but local lenders are not.

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