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No Waiting Period After Housing Event With Non-QM Loans

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No Waiting Period After Housing Event With Non-QM Loans

This BLOG ON No Waiting Period After Housing Event With Non-QM Loans Was UPDATED On March 11th, 2019

No Waiting Period After Housing Event: We now can offer a mortgage alternative program for those home buyers who have just had housing event.

  • Housing events are foreclosure, deed in lieu of foreclosure, short sale
  • We are an innovative real estate company founded with the mission to assist families who cannot qualify for a traditional mortgage
  • Traditionally, there is a two-year waiting period after Chapter 7 Bankruptcy discharge to be eligible to apply for an FHA loan and 4 years to qualify for a Conventional Loans
  • The waiting period is 3 years to qualify for an FHA loan after a foreclosure, deed in lieu of foreclosure, or short sale
  • The waiting period is 7 years to qualify for a conventional loan after foreclosure, deed in lieu of foreclosure, or short sale
  • There are millions of potential homeowners who were victims of the real estate and financial collapse
  • They have since recovered who are not eligible to purchase a home due to the federal waiting period mandatory requirements after a bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale
  • Now we offer No Waiting Period After Housing Event With Non-QM Loans
  • NON-QM Loans enable folks to actually get into the home of their dreams and enable them to purchase without any waiting period after housing event

Who Are Non-QM Borrowers And How It Works

The home buyer has no waiting period requirements after housing event with non-qm loans. There is a one year waiting period to qualify for non-qm loans after Chapter 7 Bankruptcy discharged date.

  • There are minimum mortgage guidelines on all non-qm loans and bank statement loans for self-employed borrowers
  • Borrowers can qualify one year Chapter 13 bankruptcy discharge and one day after foreclosure and deed in lieu of foreclosure recorded date as well as one day after a short sale
  • Borrowers need to meet the following mortgage guidelines on non-qm loans:
    • to be employed
    • have no late payments in the past 12 months
    • minimum of a 640 credit score
    • no greater than a 50% debt to income ratios ( 45% debt to income ratios is preferred )
    • 3 months cash reserves for principal, interest, taxes, and insurance
    • have the necessary closing costs and down payment
    • Deferred student loans deferred for more than 12 months are exempt from debt to income ratio calculations

Down Payment Requirements On Non-QM Loans

NON-QM loans require more down payment than government and/or conventional loans: 

  • 10% to 20% down payment is required on non-qm loans on 640 credit scores
  • 15% down payment with 660 credit scores
  • 10% down payment with 680 credit scores
  • 5% down payment required on conforming mortgage loans
  • 10% down payment on Jumbo Mortgage Loans up to $2 million
  • Once borrowers are approved for NON-QM Loans, then they will be issued an approval and can go and start shopping for a home
  • There is No Waiting Period After Housing Event with bank statement mortgage loans
  • Once buyers choose a home to their liking, they enter into a real estate purchase contract
  • With an executed real estate purchase contact, buyers submit signed a contract to their loan officers
  • Once a contract has been accepted, mortgage application goes through the full underwriting process

Non-QM Loans are becoming more and more popular due to no private insurance premium requirement.

Bank Statement Loans For Self Employed Borrowers

Bank Statement Loans For Self Employed Borrowers  do not require any tax returns and are geared towards self-employed borrowers. There is No Waiting Period After Housing Event with our bank statement loan programs for self-employed borrowers. Lenders only require either 12 months or 24 months borrowers bank statements. 12 or 24 months bank statements are averaged for the past 12 and/or 24 months and that average will be monthly income. Borrowers can use personal and/or business bank statements. 100% of deposits are averaged on personal bank statements. 50% of deposits are averaged on business bank deposit deposits. Minimum credit scores to qualify for bank statement loans for self-employed borrowers is 620. 20% down payment is required on home purchase. Borrowers with credit scores over 720 can qualify for 10% down payment home purchase. 680 credit scores require 15% down payment. 50% maximum debt to income ratios.

Gustan Cho NMLS ID 873293

www.gustancho.com

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