NON-QM Mortgage One Day Out Of Foreclosure And Bankruptcy

This Article Is About NON-QM Mortgage One Day Out Of Foreclosure And Bankruptcy:

NON-QM loans were one of the hottest mortgage loan programs prior to the coronavirus outbreak that hit the nation in February 2020. Non-QM loans made homeownership possible to homebuyers who would otherwise not have qualified for a mortgage. Non-QM and alternative financing loan programs were the next big thing to hit the mortgage markets since subprime and stated income loans. 

When the coronavirus outbreak hit the U.S., it shook up the secondary mortgage bond markets. Non-QM home loans came to an abrupt halt. Hundreds of thousands of borrowers with approval and/or clear to close on non-QM loans were affected. Their pre-approval and clear to close became null and void. Many in the real estate industry were alarmed that the suspense of non-QM loans may trigger the next housing crisis and recession.

Many non-QM lenders closed operations. Some went out of business while others went bankrupt. The very few non-QM lenders that survived reopened. However, tighter restrictions were placed when non-QM lenders reopened operations. Many non-QM lenders no longer offered NON-QM Mortgage One Day Out Of Foreclosure. Angel Oak Mortgage Solutions, one of the most known Non-QM lenders, reopened operations but required a four-year waiting period after bankruptcy and/or foreclosure on Non-QM Loans. The suspense of non-QM lending programs was temporary. Soon, non-QM wholesale lenders reopened operations and expanded like never before.

No need to worry. Gustan Cho Associates offers NON-QM Mortgage One Day Out Of Foreclosure and Bankruptcy.

Non-QM Mortgage One Day Out Of Bankruptcy And Foreclosure Benefit Hot Booming Housing Market

The U.S. economy and housing market were booming prior to the coronavirus pandemic outbreak in the U.S. in February 2020:

The coronavirus outbreak shook up the Non-QM mortgage markets. All lenders of non-QM loans have ceased operations until further notice due to the shakeup of the secondary mortgage bond markets. Many Non-QM lenders have permanently closed while others went bankrupt.

Many experts and economists forecasted another mortgage meltdown like the 2008 subprime mortgage crisis and demise. Many industry experts predicted the end of non-QM mortgages. However, the non-QM mortgage markets reopened with many changes. Most non-QM lenders ceased Non-QM Mortgage one day out of foreclosure and bankruptcy and extended the waiting period requirements to 4 years.

However, the great news is Gustan Cho Associates is now offering Non-QM Mortgage One Day Out Of Foreclosure And Bankruptcy to homebuyers and/or homeowners refinancing their home loans.

Homebuyers Can Now Qualify For Non-QM Mortgage One Day Out Of Foreclosure And Bankruptcy During Booming Housing Market

Temporary Shutdown Of NON-QM Mortgage One Day Out Of Foreclosure And Bankruptcy loan program has now reopened.

Prior to the launch of non-QM mortgages one day out of foreclosure and bankruptcy, homebuyers did not have an opportunity to purchase a home during this hot housing market. The housing market has been appreciating year after year since 2012. The Federal Housing Finance Agency (FHFA) has increased conventional loan limits for 2021 to $548,250  due to increasing home prices. This was the fifth year in a row that the FHFA raised loan limits on conforming loans.

HUD, the parent of FHA, followed FHFA’s lead. HUD followed the Federal Housing Finance Agency’s lead and has increased FHA Loan Limits for the past five years due to skyrocketing home prices. FHA Loan Limits for 2021 are now capped at $356,362.

We will discuss our non-QM mortgage one day out of foreclosure and bankruptcy in this blog.

Waiting Period Requirements After Bankruptcy And Housing Event With Government And Conforming Loans

Waiting Period After Bankruptcy And Housing Event With Government And Conforming Loans

Government and conventional loans require a mandatory waiting period after foreclosure and bankruptcy. Here are the waiting period requirements on government and conventional loans:

  • HUD, the parent of FHA, requires a two year waiting period after bankruptcy to qualify for FHA Home Loans
  • FHA requires a three year mandatory waiting period of 3 years after foreclosure, deed in lieu of foreclosure, short sale
  • VA has a 2 year mandatory waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • USDA required 3 years after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • Fannie Mae and Freddie Mac require a 4-year waiting period after Chapter 7 Bankruptcy, deed in lieu of foreclosure, short sale
  • Fannie Mae and Freddie Mac have a two-year waiting period after the Chapter 13 Bankruptcy discharged date
  • Most jumbo lenders will have a 7-year waiting period to qualify for Jumbo Mortgages

Non-QM Mortgage One Day Out Of Foreclosure And Bankruptcy has no waiting period.

Housing Event Date Versus Recorded Date

Many homeowners who went through a foreclosure and/or deed in lieu of foreclosure many years ago have issues with lenders not recording their housing event in public records.

  • For example, a homeowner may have turned in their keys and settled with a lender with a deed in lieu of foreclosure 5 years ago
  • However, the lender did not record the deed transfer until now
  • Unfortunately, the waiting period start date will not begin until today
  • The date where homeowners turned in their keys does not count
  • It is the date the housing event was recorded in the county’s recorder of deeds office
  • This date is the official date of the waiting period start date
  • The waiting period requirement will disqualify home buyers from qualifying for a government and/or conventional mortgage

Now homebuyers can qualify for non-QM loans with no waiting period requirements.

NON-QM Mortgage One Day Out Of Foreclosure And Bankruptcy Guidelines

NON-QM Loans are not hard money loans.

NON-QM Loans are not hard money loans. They are portfolio loans. There are no set mortgage guidelines on Non-QM loans. Each Non-QM lender has its own mortgage guidelines. The risker a borrower is viewed by a lender, the higher the lending requirements and the down payment required. Mortgage Rates are slightly higher than government and conventional loans. Mortgage Rates On NON-QM Loans depends on the longevity of the housing event, the credit scores of borrowers, and the down payment home buyers are putting down. Normal down payments are 10% to 20%. There are no maximum loan limits on non-QM loans. There is no private mortgage insurance required. Today’s real estate market is booming. Many homebuyers are being priced out of the market due to skyrocketing home values. Borrowers who need further information on non-QM mortgages one day out of foreclosure and/or bankruptcy, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected] The Team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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