Qualifying For Home Loan With Late Payments After Bankruptcy

This BLOG On Qualifying For Home Loan With Late Payments After Bankruptcy Was UPDATED On August 15, 2017

Qualifying For Home Loan With Late Payments After Bankruptcy will be difficult with many mortgage lenders. However, The Gustan Cho Team has helped countless of folks with late payments after bankruptcy qualify for mortgage loans.

  • The impact of the 2008 Real Estate and Mortgage Meltdown of 2008 has forced many Americans into bankruptcy and foreclosure
  • The whole mortgage industry went through a complete overhaul and new mortgage lending guidelines were implemented by the government. 
  • The government and mortgage industry regulators realized that many hard working families went through bankruptcies and foreclosures due to the economic meltdown and they scrambled to find a solution for potential home buyers who had a prior bankruptcy and foreclosure to be eligible to become homeowners again. 
  • The good news is that home buyers can be eligible to purchase a home after bankruptcy and foreclosure, however, the government has set strict mandatory guidelines with regards to waiting periods and credit after bankruptcy and foreclosure to qualify for a home loan. 
  • Depending on the loan program, people who had a prior bankruptcy can now qualify for a home loan.

Qualifying For Home Loan With Late Payments After Bankruptcy And Waiting Period

There are mandatory waiting period after bankruptcy a potential home buyer needs to adhere to in order to qualify for a home loan.

  • Mandatory waiting period for FHA Loans is two years from the date of the bankruptcy discharge date to qualify for a home loan. 
  • There is a mandatory four year waiting period to qualify for a conventional home loan after the discharge date of the bankruptcy.

Solution With Qualifying For Home Loan With Late Payments After Bankruptcy

Most mortgage lenders have their own mortgage lender overlays  with regards to late payments after bankruptcy.

  • Majority of mortgage lenders will not approve a mortgage loan applicant who has had late payments after bankruptcy. 
  • Late Payments after bankruptcy and/or foreclosure is considered a very serious offense.
  • Most lenders will automatically disqualify borrowers with late payments after bankruptcy and/or foreclosure and consider it a second offender.
  • Good news is that late payments after bankruptcy and/or foreclosure is not a mortgage guideline but rather a lender overlay.
  • The Gustan Cho Team at USA Mortgage has helped countless of borrowers with late payments after bankruptcy and/or foreclosure.
  • They expect that once a consumer has had their bankruptcy discharged that they re-establish their credit and be timely on all of their monthly minimum credit obligations. 
  • Unfortunately, extenuating circumstances does happen and some folks do have late payments after bankruptcy. 
  • A large percentage of my borrowers are folks who were turned down by other mortgage lenders due to having late payments after bankruptcy. 
  • Mortgage borrowers who have had late payments after bankruptcy, please call me at 262-716-8151 or email me at gcho@gustancho.com and I will be able to help you.

Advice On Qualifying For Home Loan With Late Payments After Bankruptcy

The Gustan Cho Team at USA Mortgage can help borrowers get mortgage loan approvals with late payments after bankruptcy.

  • We have no mortgage lender overlays.
  • We just go off the automated approval rendered by the automated underwriting system . 
  • The best way to overcome late payments after bankruptcy is to add more positive credit. 
  • By adding positive credit is by getting 3 to 5 secured credit cards and make sure not to be late on minimum monthly payments. 
  • Another thing to do is if consumers had a one time late payment after bankruptcy, they can contact their creditor and see if they can remove the late payment off credit report. 
  • Consumers who had a good payment history with their creditor and just have a one time 30 day late payment, many creditors will remove the late payment off credit report as a courtesy. 
  • If the customer service agent says no, then kindly ask to speak to a supervisor and they may show more compassion and may delete the late payment off credit report. 

Potential home buyers who have had late payments after bankruptcy and getting denied by mortgage lenders please contact us at 262-716-8151 or email me at gcho@gustancho.com.  Over 75% of our borrowers are folks who could not qualify elsewhere due to their lender overlays but we get them qualified and closed.

Related> Qualifying For Mortgage After Bankruptcy And Foreclosure

Related> 2015 Guidelines On Mortgage After Bankruptcy

Related> Mortgage After Bankruptcy: 2015 Waiting Period Guidelines

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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