No Waiting Period After Foreclosure With NON-QM Loans

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This BLOG On No Waiting Period After Foreclosure With NON-QM Loans Was UPDATED And PUBLISHED On November 18th, 2020

Many married couples who are seeking a home loan with bad credit are confused when it comes to the mandatory waiting period after foreclosure to qualify for FHA Home Loans.

  • Borrowers who are married with the spouse being the only person on the mortgage note but both on the title and if the home was foreclosed on under 3 years ago, they can qualify for a mortgage loan
  • Only one borrower needs to be on the new loan 
  • Both can be on the title

In this article, we will discuss and covering in qualifying for a home loan after bankruptcy and/or housing event.

When Does Waiting Period Clock Start?No Waiting Period After Foreclosure

The waiting period after foreclosure does not apply since one person was not on the mortgage loan that was foreclosed on.

  • A couple can be currently be living on the home that is being foreclosed on and still qualify for FHA insured mortgage loan as long as they are not on the mortgage note and spouse is
  • Many borrowers think that because they are married and they are on title, both people need to pass the mandatory waiting period after a foreclosure
  • Only the person on the mortgage is how the waiting period applies after housing event
 

Mandatory Waiting Period After Foreclosure, Deed In Lieu Of Foreclosure, Short Sale, And Bankruptcy

Those who had a prior bankruptcy, foreclosure, deed in lieu of bankruptcy, or short sale, federal mortgage lending guidelines require mandatory waiting period to be able to re-qualify for government and/or conventional loans.

  • For bankruptcy, there is a mandatory waiting period of two years from the discharge date of Chapter 7 bankruptcy
  • For a foreclosure, deed in lieu of foreclosure, or short sale, there is a three year mandatory waiting period after the housing event
  • As mentioned in the earlier paragraph, those who are married and they are not on the mortgage note but are on title, there is no waiting period after foreclosure and/or housing event
  • It only applies to the person who is on the mortgage note

One Year Waiting Period After Bankruptcy

Home Buyers with a prior Chapter 7 Bankruptcy discharge can qualify for non-QM loans one year after the discharged date.

  • There is no waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • 20% down payment is required
  • However, borrowers with credit scores higher than 680 can qualify for non-QM loans with 10% down payment on a home purchase
  • Minimum credit scores to qualify is 640

Mortgage After Foreclosure & Other Housing Event

There are many folks who had a prior foreclosure years ago

  • However, the foreclosure has just recently gotten recorded
  • There are mandatory waiting period requirements to qualify for government and/or conventional loans after a housing event
  • Unfortunately, the waiting period clock does not start until the actual recorded date of foreclosure, deed in lieu of foreclosure, or short sale date
  • Many qualified home buyers cannot qualify for a traditional government and/or conventional loan due to not being able to meet the waiting period after a housing event
  • The Gustan Cho Team now offers NON-QM Loans
  • There is no waiting period after bankruptcy, foreclosure and other housing events
  • To qualify, borrowers need 10% to 20% down payment is required
  • To qualify for 10% down payment non-QM loans, the borrower needs to have at least a 680 middle credit score
  • Minimum credit scores to qualify for non-QM loans is 500 FICO

Gustan Cho Associates has over a dozen wholesale non-QM lenders.

Qualifying For Alternative Type Financing With Direct Lender With No Overlays

How to qualify for alternative financing with a direct lender without overlays

Home Buyers who need to qualify for a mortgage with a national direct lender with no mortgage overlays can contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. We have ZERO OVERLAYS on FHA, VA, USDA, and Conventional Loans. We are correspondent lenders on non-QM loans and bank statement loans for self-employed borrowers

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