Mortgage Loan Programs: QM Mortgage Rules

I  work with dozens of realtor referral partners. I get daily inquiries from realtors about the specialty products I have to offer their home buyers and many realtors have requests that I blog about the mortgage loan programs I have to offer.  If you have a client denied for mortgage loan because their credit scores are below 620 FICO, have high debt to income ratios, have open collections, have recent late payments, have no credit or credit scores, has been on the job for less than 2 years, or have other credit issues but can afford a home, contact me and I will be able to help.

Mortgage Loan Programs With No Lender Overlays

Here is the personal service I can offer:
1.  I am available 7 days a week, including holidays, and you can always get a hold of me on my cell at 262-716-8151 or .
2.  Clients can apply online, 24/7 by going to www.gustancho.comand clicking the apply now icon on top right category section. Pre-approvals are issued 7 days per week.  Once the mortgage borrower completes the online application, I will get alerted and get to work.
3. Once mortgage client applies online, I run credit check and can submit mortgage application and credit report to our Automated Underwriting System for an automated approval.  If we do not get an automated approval, I can still qualify you as a manual underwriting.  If you have real bad credit, we will work in getting your credit issues resolved and get you ready for a mortgage loan approval as soon as possible.  There are no costs or fees associated with me helping you with your credit issues.
4.  All calls promptly returned. Available evenings, weekends, and holidays.
5.  100% mortgage approvals after submitting formal mortgage application.  I will not submit a mortgage application until I have went over the mortgage case scenario with wholesale lender and discussed all issues with underwriter. 
6.  If you got turned down by another mortgage lender, please contact me.   Chances are you got turned down due to their own internal mortgage lending overlays.  Many mortgage lenders have overlays.  I can help you get a 3.5% residential mortgage loan with a credit score of 580 FICO.  Most mortgage lenders require a 620 FICO or 640 FICO.  I have closed on many loans that other  mortgage lenders could not do.
7.  Have access to over 30 wholesale and correspondent mortgage lenders, many of them that do not have overlays and can close on mortgage loans with open collections, recent late payments, judgments, tax liens, overdrafts, and recent late payments. Will qualify your home buyer and once fully qualified, you can rest assured that your client’s mortgage loan will close.

QM Mortgage Rules: New Mortgage Loan Programs For 1st Quarter 2014


1.  530 FICO to 580 FICO Scores:  Borrowers with credit scores between 530 FICO to 580 FICO scores require 10% down payment plus compensating factors.

2.  3.5% Down Payment Minimum Credit Score Requirements:  For a home buyer to qualify for a 3.5% down payment FHA insured mortgage loan, the minimum credit score required is 580 FICO.  However, borrowers with credit scores between 580 FICO and 620 FICO, the maximum debt to income ratios are 31% front end debt to income ratio and 43% back end debt to income ratio.  If you can boost your credit scores to over 620 FICO, the front debt to income ratio caps boosts up to 46.9% DTI and the back end caps at 56.9%.  I have no mortgage lender overlays.  If you get an automated approval per DU FINDINGS, that is your final approval.

3.  Non-occupied co-borrowers: Non-occupied co-borrowers allowed on FHA insured mortgage loans and a sellers concession towards a buyer’s closing cost of 6% maximum is allowed.

4.  Prior bad credit:  Many people have had prior bad credit such as bankruptcy, foreclosure, charge offs, open collection accounts, tax liens, judgments, overdrafts, and other credit issues.  Open collections do not have to be paid off and if you have a judgment or tax liens, you need a payment agreement and two months timely payment history.  As long as you have not been late on your bills for the past six months and have income, you shoud be able to qualify.
5.  Bankruptcy, foreclosure, deed in lieu of foreclosure, short sales:
 Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure, Short Sales are allowed, however, need to adhere to federal mortgage  lending guidelines concerning mandatory waiting period requirements. There is a two year waiting period for those who had a prior bankruptcy.  The two year waiting period time clock starts from the date of the bankruptcy discharge.  There is a three year waiting period for those who have had a foreclosure, deed in lieu of foreclosure, or short sale.  The three year waiting period starts from the recorded date of the foreclosure and/or deed in lieu of foreclosure.  This is the date where the your name has been transferred out into the mortgage lender’s name.  On short sales, the 3 year waiting period starts the date of the short sale that is reflected on the HUD’s settlement statement. 
6. HUD has launched the FHA Back to Work Extenuating Circumstances due to an economic event mortgage program in August 15, 2013 where it shortens the waiting period to one year for those who had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  If your reason to file bankruptcy or go through a foreclosure, deed in lieu of foreclosure, or short sale was due to being out of work or being underemployed where it caused at least a 20% reduction of your household income prior to the initiation of the economic event, you will qualify for the one year waiting period FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program.
7.  Manual underwrites for those with a referred eligible:    For those mortgage loan borrowers who cannot get a approve eligible per automated FINDINGS, manual underwriting is available.
8.  Gift funds:  All down payment can be gifted by a family member.  A gift letter needs to be signed by the donor and the transfer of funds from the donor’s account to the recepient’s account needs to be sourced.
9.  Fast approvals and closings:  24 hour mortgage underwrites and approvals and closings in less than 30 days.  If you need a rush closing, we can close mortgage loans in 2 weeks as long as the borrower cooperates and we order a rush appraisal on the subject property.

Conventional Loans: No Mortgage Insurance And No Overlays

I offer conventional mortgage loans with no mortgage insurance.  It is called Lender Paid Mortgage Insurance and it is available for conventional home buyers who can put at least 5% down payment.  We have no mortgage lender overlays on conventional mortgage loan programs.  As long as you get an approve eligible per automated FINDINGS, you are approved and ready to close once we process and underwrite your mortgage application.

Refinance Mortgage Loans: FHA Streamline With No Income, No Credit, No Appraisals

If you are thinking of refinancing your current FHA mortgage loan into a conventional lender paid  mortgage insurance mortgage loan so you do not have to pay mortgage insurance premium, I can offer a lender paid mortgage insurance conventional loan where there are no mortgage insurance.


I also offer VA mortgage loans, USDA mortgage loans, Homepath mortgage loans, FHA 203K mortgage loans, and portfolio mortgage loans such as condotel financing and non-warrantable condominium mortgage loans.  If you are interest in residential mortgage loans with no mortgage lender overlays with a minimum credit of 580 FICO score in Illinois, Florida, Wisconsin, California, or Indiana, please contact me at 262-716-8151 or at .

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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