Qualifying For Mortgage After Bankruptcy With Lenders With No Overlays

This BLOG On Qualifying For Mortgage After Bankruptcy With Lenders With No Overlays Was PUBLISHED On January 21st, 2019

Qualifying For Mortgage After Bankruptcy With Lenders With No Overlays may be difficult. However, one of the very few national lenders with no overlays when qualifying for mortgage after Bankruptcy is Gustan Cho Associates at Loan Cabin Inc. NMLS 1657322. The Gustan Cho Team at Loan Cabin Inc. is a five star direct lender with no overlays on government and conforming loans. Over 75% of borrowers at Gustan Cho Associates Mortgage Group are folks who had trouble qualifying for mortgage after bankruptcy. Massimo Ressa is the Chief Executive Officer, Gustan Cho is the National Managing Director, Piotr Bieda is the Chief Operating/Technology Officer, Alex Carlucci is a Senior Vice President, and Michael Gracz is the National Sales Manager.

What Are Lender Overlays

All lenders need to follow agency mortgage guidelines.

  • However, lenders can have higher credit and DTI requirements that are above and beyond agency guidelines
  • These higher credit/income guidelines are called lender overlays
  • Gustan Cho Associates Mortgage Group has zero overlays on government and conventional loans

HUD Guidelines On FHA Loans After Bankruptcy

There is two year waiting period after discharged date of Chapter 7 Bankruptcy.

  • Borrowers can qualify for FHA Loans one year into their Chapter 13 Bankruptcy Repayment Plan
  • Chapter 13 does not have to be discharged
  • There is no waiting period to qualify for FHA Loans after Chapter 13 Bankruptcy
  • Any FHA Loans After Bankruptcy with 2 years or less seasoning from discharged date needs to be manual underwriting
  • There is three years waiting period after foreclosure, deed in lieu of foreclosure, short sale

VA Guidelines After Bankruptcy

VA has much lenient guidelines in qualifying for mortgage after bankruptcy.

  • VA like FHA allows borrowers to qualify for one year into their Chapter 13 Bankruptcy Repayment Plan
  • Need Trustee Approval
  • There is no waiting period to qualify for VA Loans after Chapter 13 Bankruptcy discharged date
  • As with FHA, any VA Loans After Bankruptcy with 2 years or less seasoning from discharged date needs to be manual underwriting
  • VA requires two year waiting period after Chapter 7 Bankruptcy discharged date
  • VA requires two year waiting period after foreclosure, deed in lieu of foreclosure, short sale

Fannie Mae And Freddie Mac Guidelines On Mortgage After Bankruptcy

Borrowers can qualify for conventional loans after bankruptcy.

Here are the conventional loans after bankruptcy guidelines:

  • Four year wait period after Chapter 7 Bankruptcy discharged date
  • Two year waiting period after Chapter 13 discharged date
  • Four year waiting period after Chapter 13 dismissal date
  • Four year waiting period after deed in lieu of foreclosure and short sale
  • 7 year waiting period after standard foreclosure

Mortgage Included In Bankruptcy

Home buyers who had mortgage included in bankruptcy, there is a four year waiting period from the discharged date of bankruptcy. The housing event can happen after the discharged date of the bankruptcy. The waiting period on the housing event does not matter. We only go by discharged date of the bankruptcy.

Qualifying For Mortgage After Bankruptcy With Gustan Cho Associates At Loan Cabin Inc.

Borrowers who need to qualify for mortgage after bankruptcy can contact us at Gustan Cho Associates at Loan Cabin Inc. NMLS 1657322 at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. The Gustan Cho Team at Loan Cabin Inc. is available 7 days a week, evenings, weekends, and holidays.

LEAVE A REPLY

Please enter your comment!
Please enter your name here