NON-QM Loans After Bankruptcy And Foreclosure With No Max Loan Limit

Homebuyers are no longer priced out of the bullish housing market with needing to meet the minimum waiting period on government and conventional loans with our NON-QM Loans After Bankruptcy And Foreclosure at Gustan Cho Associates. There are many folks who recover faster than others after bankruptcy and foreclosure. These folks who recover sooner than the mandatory waiting period on government and conventional loans can now qualify for a mortgage with non-QM loans one day out of bankruptcy and foreclosure.

Non-QM Loans One Day Out Of Bankruptcy And Foreclosure

Gustan Cho Associates now offers non-QM mortgages one day out of bankruptcy and foreclosure with a 30% down payment. This loan program with no waiting period benefits many homebuyers who do not have to wait the mandatory waiting period on government and conventional loans during today’s booming housing market. Home prices in 2020 want up 14%. 2021 home prices went out of control where the new norm was buying homes over list price. It was not doubt a seller’s market. There is a major shortage of homes. Home prices have been skyrocketing for the past seven years with no signs of a housing correction.

History Of The Ill-Fated Of The FHA Back To Work Mortgage

It has been almost a few years since the United States Department of Housing and Urban Development, HUD, has launched the FHA Back to Work Extenuating Circumstances due to an economic event mortgage program. Unfortunately, the FHA Back To Work turned out to be a complete disaster and flop. However, no need to panic. We will explain how the FHA Back To Work Mortgage loan program launched by HUD a few years ago turned out to be a total dud. Calling it a nightmare is an understatement. The back-to-work mortgage program only lasted a year.

How HUD’s FHA Back To Work Loan Program Affected Many Families With False Hope

Many Americans got negatively affected by the ill-fated back-to-work loan program that left a back tastes.  NON-QM Loans After Bankruptcy And Foreclosure are now available at GCA Mortgage. The Back to Work Extenuating Circumstances due to an Economic Event mortgage program was launched by HUD last August 15, 2013/ Since the program came out, thousands of home buyers applied for this loan program. This loan program stated that borrowers can qualify one year after bankruptcy and/or foreclosure FHA mortgage loan program.

The Demise Of HUD’s FHA Back To Work Mortgage

Millions of potential home buyers did not qualify for the FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program. This was due to its strict mortgage lending guidelines and how vague the guidelines were. Only those who have been terminated or laid off from their full-time employment or had their companies shut down qualified for the FHA Back to Work Mortgage. The FHA Back to Work mortgage loan program did not apply to those who had other extenuating circumstances.

Confusion By Mortgage Underwriters With The Definition Of What Extenuating Circumstances Meant

Borrowers who had extenuating circumstances like business owners who had to shut their doors due to the economic collapse of 2008 did not qualify. Nor did it apply for those who quit their jobs earlier voluntarily because the company they were working for would eventually be closed. It also did not apply to those who had other extenuating circumstances such as medical illness or divorce. The birth of the FHA Back to Work Extenuating Circumstances due to an economic event was to shorten and waive the traditional waiting period of 2 years. after bankruptcy discharge and the traditional waiting period of 3 years after a foreclosure, deed in lieu of foreclosure, and short sale. The FHA Back to Work mortgage program shortens the waiting period to a one-year waiting period after bankruptcy and foreclosure. However, the one-year waiting period after bankruptcy and foreclosure mortgage program has strict underwriting guidelines. Very few ever closed their home loans with the Back To Work Program.

How The FHA Back To Work Extenuating Circumstances Due To An Economic Event Turned Out To Be A Flop

The FHA Back to Work extenuating circumstances due to an economic event mortgage loan program turned out to be a major disaster. This loan program is no longer available. We are mentioning the Back to Work loan program to show our viewers how risky a brand new loan program can be. The FHA Back to Work loan program was first was launched last August 15, 2013. Many FHA lenders had a hard time underwriting FHA loan applications. Mortgage underwriters were approving FHA Back to Work Extenuating Circumstances due to economic mortgage applications Then underwriters were denied them because they were confused about the underwriting criteria. There are thousands of Back to Work mortgage loan applicants who got approved for the FHA Back to Work mortgage loan and then get denied. Mortgage underwriters had to go through growing pains and eventually most lenders stopped doing these loans.

Eligibility Requirements For The FHA Back To Work Loan Program

bankruptcy and foreclosure

To qualify for a mortgage loan after a one-year waiting period after bankruptcy and foreclosure, the home buyer needs to have been involuntarily laid off or their employer needed to have shut down. A voluntary resignation or quitting prior to being involuntarily laid off does not meet the qualification standards of the Back to Work mortgage program. The involuntary job loss needed to have caused at least a 20% reduction of household income for the home buyer for at least six months or more. The Back to Work mortgage loan applicant had to have had good credit and timely payment history until the economic event. Once the economic event impacted the mortgage loan borrower, it is understandable that their credit scores tanked.

The Biggest Flop In HUD’s History 

The FHA Back To Work Mortgage turned out to be the biggest flop in the history of HUD. Never in the history of the U.S. Housing and Urban Development (HUD) has a mortgage loan program been so vague and caused so much confusion among mortgage underwriters and borrowers. Most underwriters were so confused with the vague guidelines that lenders completely stopped doing them. The ideal was great but nobody could close. It was not just a nighmare but a living Hell of a process to go through to ultimately get denied at the end.

How HUD’s FHA Back To Work Loan Program’s Demise Got Non-QM Loans Started

After the Back to Work Mortgage loan applicant has found a full-time job, mortgage loan underwriters want to see that the applicant has re-established their credit with new credit such as secured credit cards and have not had a single late payment on their credit report. One late payment can disqualify a mortgage loan application for the FHA Back to Work Extenuating Circumstances mortgage loan program. Rental verification is a must unless the mortgage loan applicant is living with family. The Back to Work mortgage loan applicant needs to have completed a HUD-approved housing course and cannot apply for a formal mortgage loan application until 30 days after completion of the HUD-approved housing course. All FHA Back to Work mortgage loans is manually underwritten. Manual underwrites have lower debt to income ratio caps. Maximum front-end debt to income ratios are capped at 31% and the cap on the back-end debt to income ratios are at 43% DTI on all manual underwrites with no compensating factors. DTI can go up to 37% front-end and 47% back-end with one compensating factor. The debt to income ratio can go up to 40% front-end and 50% back-end with two compensating factors.

NON-QM Loans After Bankruptcy And Foreclosure With No Waiting Period Requirements

Gustan Cho Associates has a new home loan program, NON-QM Loans After Bankruptcy And Foreclosure. There is no waiting period after bankruptcy and foreclosure. NON-QM Loans After Bankruptcy And Foreclosure The NON-QM Loan Program is a portfolio loan program where there is no waiting period after the following:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Foreclosures
  • Deed In Lieu Of Foreclosures
  • Short Sales

The Success Of Non-QM Loans 

NON-QM Loans After Bankruptcy And Foreclosure has become very popular since there are no loan limits and have non-traditional lending requirements such as no income verification and bank statement only loan programs with no income tax returns required. NON-QM Loans After Bankruptcy And Foreclosure has no waiting periods after bankruptcy and/or foreclosure. Please Gustan Cho Associates at 262-716-8151 or text us for a faster response for more information on NON-QM LoansOr email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. GCA Mortgage Group has dozens of lending relationships with non-QM wholesale mortgage lenders.

No Waiting Period After Bankruptcy And Foreclosure To Qualify For A Mortgage

Gustan Cho Associates offers non-QM mortgages one day out of bankruptcy with no waiting period required with a 30% down payment requirement. There is no waiting period after bankruptcy and/or a housing event to qualify for non-QM loans one day out of bankruptcy. However, lenders want to see skin in the game by borrowers. A 30% down payment is a steep down payment on a home purchase. However, people who recover quickly after bankruptcy do not have to wait until two, three, or four years during this booming housing market. In this article, we will discuss and cover qualifying for non-QM loans after bankruptcy with no waiting period requirements.

Buying A Home During Bullish Housing Market After Bankruptcy With No Waiting Period

NON-QM Mortgage After Bankruptcy is offered by Gustan Cho Associates. There is no waiting period after bankruptcy with non-QM mortgages. No maximum loan limit. No private mortgage insurance is required on non-QM loans.

Let’s face it, over the past decade many Americans have gone through a financial crisis. Some cases are more extreme than others. During the crash of 2008 foreclosure rates were some of the highest in history. Many Americans held on as long as they could but ultimately ended up or closing or filing bankruptcy. Foreclosure and bankruptcy are ugly words in the mortgage industry. Many loan officers will hear these terms and instantly cringe. Many lenders cannot help clients with recent bankruptcies. The good news is, Gustan Cho Associates can secure mortgages for individuals or families who have suffered one of these financial hardships. In this blog, we will detail loan programs we have available for situations such as bankruptcies. These mortgage products fall under the NON-QM mortgages umbrella.

NON-QM Mortgage Options For Homebuyers

First, it is important to understand a QM mortgage versus a NON-QM mortgage. “QM” stands for a qualified mortgage. This is a term brought to you by the CFPB Consumer Financial Protection Bureau. Please see this link on QM MORTGAGE rules for more information. As stated above, this blog will detail NON-QM mortgages. NON-QM mortgages are designed to help more clients who may not fit in the everyday mortgage product.

We have many loan types available such as bank statement loans, foreign national programs, investor cash flow programs, and loans for recent housing events such as a foreclosure, short sale, or deed-in-lieu. These products allow us to offer mortgages to more borrowers than most companies.

Benefits Of NON-QM Loans Versus Traditional Mortgages

What are the bankruptcy rules for a non-QM mortgage after bankruptcy?

Now that we know what a NON-QM mortgage is let’s get into more details on how the products work. These loan programs are designed to help families who do not qualify for your everyday conventional, FHA, VA, or USDA mortgages. For example, if you foreclose on a property, you must wait at least three years to qualify for an FHA mortgage and longer for conventional. The waiting period for FHA is 3 years from the recorded date on the title. Not every County will record the foreclosure on the title in a timely fashion. Meaning your three-year waiting period may be more like three and a half or four years. This is a frustrating fact for many clients.

Non-QM Waiting Period Requirements After Bankruptcy

The good news is with a NON-QM loan, you do not have to wait to buy your next home. You can be as little as one day out of foreclosure and still qualify to enter into a new mortgage. You read that right, there is no seasoning requirement for a foreclosure, deed-in-lieu, or short sale. We are able to qualify you to purchase your next home instantly. Just one day out of bankruptcy discharge we can go as low as a 500 credit score with a 30%down payment. If your credit scores are above 540, you will only need a 30% downpayment. Each NON-QM mortgage is looked at on a case-by-case basis. We are able to get exceptions at times. As the bankruptcy ages, the down payment requirement will get reduced.

Mortgage After Bankruptcy Guidelines On NON-QM Loans

We offer NON-QM mortgage is through more than one Outlet. These requirements are constantly changing but as of today March 4th, 2019 we will detail the bankruptcy guidelines with NON-QM mortgages.

Non-QM Loan Requirements During Chapter 13 Bankruptcy Payment Period

If you are currently in a Chapter 13 bankruptcy, you must have 24 months of on-time payments at a minimum before you can apply for a NON-QM mortgage with Gustan Cho Associates. Any missed payments to the trustee will kill the file. As long as you have filed for chapter 13 at least 24 months ago and have never missed a payment to the trustee (or other obligations since filing for Chapter13), you are good to apply for a NON-QM mortgage loan. Your payment to the trustee will be back turned into your debt to income ratio. If your chapter 13 bankruptcy has been discharged, there is no seasoning requirement.

NOTE: Gustan Cho Associates do not have lender overlays on FHA or VA loans, and are able to qualify families to obtain FHA or VA loans during chapter 13, after 12 on-time payments to the trustee. Please contact us for more details.

How Do I Qualify For NON-QM Loans After Bankruptcy And Foreclosure

There are many reasons to file for Chapter 7, the guidelines for chapter 7 bankruptcies can be different depending on how and why you file. For example, if you include a mortgage in your Chapter 7 bankruptcy, the discharge must be season 12 months before you may apply for a NON-QM mortgage. If you file for chapter 7 and do not include mortgage debt, you may apply the day after your chapter 7 bankruptcy is discharged. We do understand these rules can be confusing. We encourage you to reach out directly for more specific information.

NON-QM Loans After Bankruptcy And Foreclosure Debt To Income Ratio Requirements

What are the NON-QM debt-to-income ratio guidelines

Qualifications for NON-QM mortgages still have guidelines such as debt to income ratio, loan-to-value ratio, and credit score requirements. While these are much more relaxed than your everyday QM mortgage, they still need to be met. Credit score requirements go down to 500. For the most part debt to income ratios are capped at 40% / 50%, but as stated above, we are able to get exceptions.

Qualifying For NON-QM Loans After Bankruptcy And Housing Event

Gustan Cho Associates are experts in mortgage lending for NON-QM and QM mortgages. The team at GCA Mortgage will never say you do not qualify and call us at a later time. The minute you contact us at Gustan Cho Associates, we work with many families until they qualify and can get pre-approved. Some folks may take a few weeks or others may take several months to qualify for a mortgage.

The Importance Of Timely Payments In The Past 12 Months

The key in qualifying for a mortgage is to have timely payments in the past 12 months.  It is more crucial for having a lower credit score with timely payments in the past 12 months versus high credit scores with late payments in the past 12 months. Please do not hesitate to contact us at Gustan Cho Associates at 262-716-8151 with any mortgage-related questions. Text us for a faster response. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, morning or evening. There are very few situations we have yet to come across that we are not able to help our borrowers. GCA Mortgage has a national reputation for being able to approve and close loans other lenders cannot. The team at Gustan Cho Associates is able to help, qualify, approve, and close mortgage loans other lenders cannot. This is a fact. Over 75% of our borrowers are folks who could not qualify at other mortgage companies due to their lender overlays on government and conventional loans.

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