This Article Is About Home Buyers Can Now Qualify For NON-QM Loans After Bankruptcy And Foreclosure On Home Purchase
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. NON-QM Loans After Bankruptcy And Foreclosure are now available at GCA Mortgage Group:
- 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.
- 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
- 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 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 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
In this article, we will discuss and cover NON-QM Loans After Bankruptcy And Foreclosure On Home Purchase.
Growing Pains With FHA Back To Work Extenuating Circumstances Due To An Economic Event
When the FHA Back to Work extenuating circumstances due to an economic event mortgage loan program first was launch last August 15, 2013, many mortgage lenders had a hard time underwriting these mortgage loan applications.
- Mortgage underwriters were approving FHA Back to Work Extenuating Circumstances due to economic mortgage applications
- Then underwriters were denying them because they were confused on 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 Extenuating Circumstances Due To An Economic Event Mortgage
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
- 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 applications 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 are 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.
NON-QM Loans After Bankruptcy And Foreclosure: No Waiting Period
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
- Deed In Lieu Of Foreclosures
- Short Sales
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. 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 Loans. Or email us at firstname.lastname@example.org. 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.