No Waiting Period For Mortgage
We now can offer a mortgage alternative program for those home buyers who have just had their bankruptcy discharged, had just had a foreclosure, had just had a deed in lieu of foreclosure, or just had a short sale with no waiting period. Our investor/lender is an innovative real estate company founded with the mission to assist families who cannot qualify for a traditional mortgage. Traditionally, there is a two year waiting period after a bankruptcy discharge to be eligible to apply for a FHA loan and 4 years to 7 years to qualify for a Conventional. The waiting period is 3 years to qualify for a FHA loan after a foreclosure, deed in lieu of foreclosure, or short sale. The waiting period is 7 years to qualify for a conventional loan after foreclosure, deed in lieu of foreclosure, or short sale. There are millions of potential homeowners who were victims of the real estate and financial collapse but have since recovered who are not eligible to purchase a home due to the federal waiting period mandatory requirements after a bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale. Now we offer a lease to own mortgage alternative program, referred as MAP, which will enable folks to actually get into the home of their dreams and enable them to purchase it once their waiting period has passed.
Who Is The MAP Customer?
MAP customers are those that cannot qualify for a mortgage due to a recent Short Sale, Foreclosure, Bankruptcy, Divorce or other credit damaging life event. The program requires no sourcing or seasoning of down payment and can be a solution for self-employed clients as Cove will utilize bank statements for verification of income.
How It Works
The home buyer applies for the rent to own Mortgage Alternative Program like he or she would apply for any other residential mortgage loan. There are minimum mortgage lending guidelines and overlays for the Mortgage Alternative Program. You can qualify one day after a bankruptcy discharge and one day after your foreclosure and deed in lieu of foreclosure recorded date as well as one day after your short sale. You need to be employed, have no late payments in the past 12 months, minimum of a 550 FICO credit score, no greater than a 50% debt to income ratios ( 45% debt to income ratios is preferred ), 3 months cash reserves for principal, interest, taxes, and insurance, and have the necessary closing costs and down payment. There is a 3% fee of the loan amount and a 5% down payment required on conformining mortgage loans and $10% down payment on Jumbo Mortgage Loans up to $2 million. Once you are approved for the Mortgage Alternative Plan, then you will be issued an approval and can go and start shopping for a home. Once you choose the home you like to purchase, you enter into a real estate purchase contract and submit your signed contract to the MAP underwriter. Once your contract has been accepted, your mortgage loan application goes through the full underwriting process. At closing, the MAP lender will purchase the home cash and you and the lender will also sign a purchase contract as well as a lease agreement. The home buyer makes the scheduled lease payments until they are able to qualify for a traditional mortgage at a later time. Once they pass their waiting period after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale and can qualify for a traditional mortgage loan, the home buyer then purchases the home from the MAP lender and the original 5% down payment is used towards the actual home purchase.
Gustan Cho NMLS ID 873293