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Qualifying For Home Loan With Late Payments After Bankruptcy

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Qualifying For Home Loan With Late Payments After Bankruptcy

This BLOG On Qualifying For Home Loan With Late Payments After Bankruptcy Was UPDATED On December 30th, 2018

Qualifying For Home Loan With Late Payments After Bankruptcy will be difficult with many lenders. However, Gustan Cho Asssociates 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
  • 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
  • This was 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 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 overlays by individual lenders
  • Gustan Cho Associates Mortgage Group 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 our borrowers are folks who were turned down by other lenders due to having late payments after bankruptcy
  • Mortgage borrowers who have had late payments after bankruptcy, please contact at 262-716-8151 or text us for faster response
  • Or email us at gcho@gustancho.com and our team of mortgage professionals will be able to help

Advice On Qualifying For Home Loan With Late Payments After Bankruptcy

The Gustan Cho Team at Loan Cabin Inc. 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 lenders please contact us at 262-716-8151 or text us for faster response. Or email us 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> Guidelines On Mortgage After Bankruptcy

Related> Mortgage After Bankruptcy: Waiting Period Guidelines

  1. Marc says

    Gustan, really appreciate you blog. Here’s my question. I had a BK 7 discharge on January 2018. I got some credit cards and picked up credit score. On October 2018 I was injured and out of work for several months during that time and unfortunately I was unable to make payments and became 60 days late on 4 cards. My goal after BK was to wait a couple years and use VA loan to buy a home. Right now I’m bummed and feel like I will never own a home. I explained my situation to the CC companies but to no avail. I feel like my only hope will be rent to own. Is there any hope and what steps can I take? Any help would be appreciated. Thank you.

    1. Gustan Cho, NMLS 873293 says

      As long as you have documents that you were injured, I can help you get your VA Loan Approval. Manual underwriting will allow late payments if there are medical extenuating circumstances. I need a strong letter of explanation with supporting documents (hospital bills, doctors note, accident reports, etc.). Please reach out to me at gcho@loancabin.com or text me on my cell at 262-716-8151. Late payments after bankruptcy is very bad and most lenders with not even look at you. My team does many late payments after bankruptcy and/or foreclosure with extenuating circumstances.

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