No Mortgage Lender Overlays Approvals On FHA And VA Loans

This Article Is About No Mortgage Lender Overlays Approvals On FHA And VA Loans

The team at Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. We are licensed to originate FHA, VA, USDA, and conventional residential mortgage loans. Our team at Gustan Cho Associates works with dozens of realtor referral partners nationwide. Gustan Cho Associates is a mortgage banker/correspondent lender with no overlays on government and conventional loans and has the ability to broker non-QM and specialty mortgage loans. GCA Mortgage gets 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 we have available and the services Gustan Cho Associates provides. In this article, we will discuss and cover the personal service Gustan Cho Associates can offer with the various mortgage programs we have to offer. We have a national reputation of being able to do loans other mortgage companies cannot do.

Mortgage Banker With No Lender Overlays

Gustan Cho Associates has No Mortgage Lender Overlays on government and conventional loans. We are available 7 days a week. Gustan Cho Associates is a 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 of the Automated Underwriting System. We have no lender overlays. Over 75% of our borrowers are folks who either gotten denied by other 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

Gustan Cho Associates 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 a 10% down payment
  • Manual underwriting is available for borrowers who meet manual underwriting agency guidelines
  • Debt to income ratios up to 46.9% front-end and 56.9% back-end
  • Non-occupied co-borrowers are allowed on FHA loans
  • Up to 6% seller’s concession allowed on FHA loans to cover buyer’s closing costs and escrows
  • Open collections, late payments, bank overdrafts, and charged-off accounts allowed
  • Borrowers with judgments and tax liens are eligible to qualify for FHA loans if they have a written payment agreement and have made three timely payments
  • Other prior bad credit allowed as long as the borrower has been timely on all of their payments for the past 12 months
  • Collections and charged-off accounts do not have to be repaid
  • Two year waiting period after Chapter 7 Bankruptcy discharged date
  • There year waiting period after Foreclosure, Deed in Lieu of Foreclosure, Short Sales
  • Need to adhere to Fannie Mae lending guidelines concerning mandatory waiting period requirements
  • No waiting period after bankruptcy borrowers can qualify with our new NON-QM Loan Program
  • No Waiting Period out of housing event with non-QM loans one day out of bankruptcy and foreclosure
  • Manual underwrites available for borrowers in an active Chapter 13 Bankruptcy repayment plan with trustee approval
  • No waiting period after Chapter 13 Bankruptcy discharged date
  • 100% gifts allowed on a home purchase by a 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 a short sale
  • This holds true 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. However, VA does not require a minimum credit score requirement. 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 Gustan Cho Associates Mortgage Group

FHA And VA Loans During And After Chapter 13 Bankruptcy With No Mortgage Lender Overlays

FHA And VA Loans During And After Chapter 13 Bankruptcy With No Mortgage Lender Overlays

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

Here are both FHA and VA Guidelines in qualifying for a 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 underwriting 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 With No Mortgage Lender Overlays

Most FHA And VA Lenders require a one-year to a two-year waiting period after a Chapter 13 Bankruptcy discharge for them to qualify for FHA And VA Loans. Gustan Cho Associates 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 economic event mortgage programBorrowers 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 affected 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 Back to Work mortgage program no longer exist. Borrowers who have recovered from bankruptcy and/or foreclosure can now qualify for a non-QM loan one day out of bankruptcy and foreclosure with a 30% down payment.

NON-QM Loans With No Waiting Period After Bankruptcy And Housing Event

NON-QM Loans With No Waiting Period After Bankruptcy And Housing Event

Gustan Cho Associates 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 30% down payment
  • Down Payment depends on the borrower’s credit score

Bank Statement Loans For Self Employed Borrowers

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

  • 12 months business and/or personal bank statements are 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 the 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 Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.

This BLOG On No Mortgage Lender Overlays Was UPDATED On November 21st, 2021