No Mortgage Lender Overlays Approvals On FHA And VA Loans

This BLOG On No Mortgage Lender Overlays Approvals On FHA And VA Loans Was UPDATED On December 9th, 2017

I am licensed to originate residential mortgage loans and work with dozens of realtor referral partners nationwide. USA Mortgage is a direct lender with no overlays on government and conventional loans.

  • I get daily inquiries from realtors throughout the country about the specialty products we have to offer their home buyers
  • Many realtors have requested that I write a blog about the mortgage loan program loan programs I have available and the services I provide
  • Here is the personal service I can offer the following mortgage programs with no mortgage lender overlays

Mortgage Banker With No Mortgage Lender Overlays

The Gustan Cho Team at USA Mortgage has No Mortgage Lender Overlays on government and conventional loans.

  • We are available 7 days a week
  • USA Mortgage is a direct lender licensed in multiple states
  • Borrowers can apply online 24’7 at www.gustancho.com/apply-now
  • All of our mortgage pre-approvals are full loan commitments issued by our mortgage underwriters
  • We only go off the automated findings off the Automated Underwriting System and have no lender overlays
  • Over 75% of our borrowers are folks who either gotten denied by other mortgage lenders or are stressing during their mortgage process with a current lender
  • Most of our borrowers close their home loans in 30 days or less

FHA Loans No Mortgage Lender Overlays

The Gustan Cho Team at USA Mortgage has no overlays on FHA Loans:

  • 580 credit scores for 3.5% down payment home purchase FHA Loans
  • Borrowers with under 580 credit scores require approve/eligible per Automated Underwriting System and 10% down payment
  • Debt to income ratios up to 56.9%
  • Non occupied co-borrowers are allowed on FHA loans
  • Up to 6% seller’s concession allowed on FHA insured mortgage loans to cover buyer’s closing costs and escrows
  • Open collections, late payments, bank overdrafts, judgments, tax liens, and other prior bad credit allowed
  • Collections do not have to be repaid.
  • Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure, Short Sales are allowed
  • However, need to adhere to Fannie Mae lending guidelines concerning mandatory waiting period requirements
  • One year waiting period after bankruptcy borrowers can qualify with our new NON-QM Loan Program
  • No Waiting Period out of housing event
  • Manual underwrites available
  • 100% gifts allowed on home purchase by family member
  • 24 hour mortgage loan underwrites and mortgage approvals
  • Closings in 14 days if it is a rush file
  • Most closings are in 30 days or less
  • No waiting period for borrowers with short sale as long as they were current on their loan until the day of the short sale and evidenced by HUD

VA Loans With No Overlays

VA does not have a minimum credit score or debt to income ratio requirement.

  • However, to get an approve/eligible per AUS, Veteran Borrowers should have at least a 580 credit score and debt to income ratio under 60% DTI
  • Residual Income and Reserves are great compensating factors on VA Loans for Veteran Borrowers with less than perfect credit and higher debt to income ratios
  • Outstanding Collections and Charge Offs do not have to be paid to qualify for VA Loans at The Gustan Cho Team at USA Mortgage 

FHA And VA Loans During And After Chapter 13 Bankruptcy

Both FHA and VA mortgage borrowers can qualify for home loans during a Chapter 13 Bankruptcy Repayment Plan.

Here are both FHA and VA Guidelines in qualifying for mortgage during Chapter 13 Bankruptcy Repayment Period:

  • To be eligible for FHA and VA Loans during Chapter 13 Bankruptcy Repayment Plan, the borrower needs to have been in a repayment plan for at least 12 months
  • Get the approval of the Chapter 13 Bankruptcy Trustee which is normally never a problem
  • Manual Underwriting so manual underwrite guidelines apply
  • Verification Of Rent: Timely rent payments in the past 12 months
  • Maximum debt to income ratio not to exceed 50% DTI

FHA And VA Loans After Chapter 13 Bankruptcy Discharged Date

Most FHA And VA Lenders require a one year to two year waiting period after a Chapter 13 Bankruptcy discharge for them to qualify for FHA And VA Loans.

  • However, The Gustan Cho Team at USA Mortgage does not have any waiting period requirement after a Chapter 13 Bankruptcy discharged date
  • Home Buyers can qualify for FHA and VA Loans during and after Chapter 13 Bankruptcy with no waiting period requirements
  • Any mortgage loan underwriting with less than 2 years of seasoning after a Chapter 13 Bankruptcy discharge is done via manual underwriting 
  • We close all manual underwrites in 30 days or less

What Are NON-QM Loans And Bank Statement Mortgage Loans

HUD has discontinued the FHA Back to Work Extenuating Circumstance due to an ecoomic event mortgage program  . Mortgage loan borrowers who have had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale used to be able to qualify after one year of a Chapter 7 Bankruptcy or Housing Event. The waiting period was shortened to a one year waiting period after Chapter 7 and/or housing event as long as the cause of the Chapter 7 Bankruptcy, Foreclosure, Deed In Lieu Of Foreclosure and/or Short Sale was caused by the borrower being unemployed, or underemployed. However, the unemployment needed to have affect the borrower’s household income by at least 20% for at least six months prior to their initiation of the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale. This program turned out to be a total flop.

The Gustan Cho Team at USA Mortgage now has NON-QM Loans in lieu of the FHA Back To Work Mortgage which has no waiting period after the following:

  • Foreclosure
  • Deed In Lieu Of Foreclosure
  • Short Sale
  • There is a one year waiting period after a Chapter 7 Bankruptcy discharged date
  • 10% to 20% down payment
  • Down Payment depends on the borrower’s credit score

We also have Bank Statement Mortgage Loan Program for self employed borrowers.

  • 24 months business and/or personal bank statements is averaged 
  • If business bank statements are used, 50% of the deposits are averaged over 24 months
  • If personal bank statements are used, then 100% of the deposits are averaged
  • No overdrafts in past 24 months
  • No income tax returns required
  • Up to 50% debt to income ratios

Home Buyers looking to get qualified with a direct lender with no overlays, please contact The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays.

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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