Buying Home After Bankruptcy With No Waiting Period
In this blog, we will discuss buying home after bankruptcy. There are mandatory waiting period requirements after bankruptcy on government and conventional loans. The waiting period requirements depend on the mortgage loan program. FHA Bad Credit Lenders offers non-QM loans where there is no waiting period after bankruptcy.
Today’s housing market is bullish. It is a seller’s market. Home values have skyrocketed over 40% in the past few years and their is no sign of correction. There are waiting period requirements on FHA, VA, USDA, and Conventional loans after bankruptcy. Buying house after bankruptcy is now passible with non-QM loans with no waiting period requirements.
Non-QM loans are portfolio mortgage loan programs with no waiting period buying home after bankruptcy. Non-QM loans are portfolio loans. Non-QM wholesale mortgage lenders either hold non-QM loans after it funds or sells them to institutional investors like hedge funds, money managers, financial institutions such as large insurance companies, or institutional investors. In the following paragraphs, we will cover buying home after bankruptcy.
Is It Possible Buying Home After Bankruptcy?
Millions of Americans have filed bankruptcy due to being victims of the financial and real estate crash of 2008. Never in history has bankruptcy filings hit historical highs. The subprime crisis and real estate crash of 2008 has changed peoples lives forever. Bankruptcy filings have hit historic highs.
Non-QM and alternative financing is back for homebuyers. You can now purchase a home with no waiting period requirements with non-QM loans. The down payment requirements on non-QM loans is generally 20% down.
For many years, non-QM loans, no-doc mortgages, 1099 income only loans, stated-income only loans, asset-depletion mortgages, and other types of alternative lending went obsolete. However, Non-QM and alternative financing is now back for owner-occupant, second homes, and investment properties.
Buying Home After Bankruptcy Waiting Period Requirements
Buying Home After Bankruptcy is not difficult. Non-QM loans have a 20% down payment requirement with no waiting period after bankruptcy discharge. FHA loans require a 3.5% down payment. VA and USDA loans does not require any down payment.
Homebuyers can qualify for a Jumbo mortgage after Chapter 7 and Chapter 13 Bankruptcy discharge with no waiting period requirements. 10% to 30% down payment is required. The down payment requirements depend on the borrower’s credit scores and credit profile. Compensating factors are taken into consideration. Minimum credit scores on non-QM jumbo loans is 550 FICO.
FHA and VA loans require a two year waiting period after Chapter 7 Bankruptcy discharge. USDA requires a three year waiting period after Chapter 7 Bankruptcy discharge. Fannie Mae and Freddie Mac require a four year waiting period after Chapter 7 Bankruptcy discharged date.
Haw Hard Is It Buying Home After Bankruptcy
.Everyone knows of someone who has either filed bankruptcy or are in the process of filing bankruptcy. Actually, filing bankruptcy is a great tool for someone to start their lives over again.
Chapter 7 Bankruptcy gives consumers a fresh financial start in life. You no longer have to worry about debt collectors calling you, getting sued by creditors, and not being able to get credit. The team at FHA Bad Credit Lenders have helped countless homebuyers get their credit scores to over 700 FICO in just less than one year after discharge.
They do have to worry about past debt Consumers don’t have to worry about dealing with debt collectors harassing them day and night. When someone files bankruptcy, all of their debts are eliminated. They can start rebuilding their credit and have a fresh financial start in life.
When Can I Buy a House After Filing Chapter 13 Bankruptcy?
Someone who has filed a Chapter 7 bankruptcy is eligible to buy a house in two years from the date of Chapter 7 discharged date with FHA and VA Loans. Homebuyers can now qualify for VA and FHA loans one year into a Chapter 13 Bankruptcy repayment plan. The Chapter 13 Bankruptcy does not need to get discharged.
FHA and VA loans are the only two mortgage loan program that allow borrowers to get mortgage approval during Chapter 13 Bankruptcy. The Chapter 13 Bankruptcy does not have to get discharged. It needs to be a manual underwrite and have Trustee Apprval.
There is no waiting period to qualify for FHA Loans after Chapter 13 Bankruptcy discharged date via manual underwriting. Buying a home after bankruptcy is possible to all Americans with no waiting period now with the comeback of NON-QM .loans. There is a two year waiting period after Chapter 13 Bankruptcy discharged date to qualify for conventional loans. There is a two year waiting period after Chapter 13 Bankruptcy dismissal date.
FHA Loans After Chapter 7 Bankruptcy
Most folks who filed Chapter 7 bankruptcy do not realize buying home after bankruptcy in just 2 years from the date of bankruptcy discharge date is possible. Homebuyers can qualify for a home purchase FHA loan two years after bankruptcy discharge date. Minimum credit score of 580 FICO is required.
Homebuyers can qualify for an FHA loan with credit scores down to 500 FICO with a ten percent down payment. HUD, the parent of HUD require a ten percent down payment for borrowers with credit scores under 580 FICO.
Homebuyers with at least a 580 credit score can qualify for an FHA loan by putting a 3.5% down payment towards their purchase price. The balance is financed via FHA Loan. For those who filed bankruptcy and are considering purchase a home in two years, they need to start rebuilding their credit: Never be late on their monthly debt payments.
Re-Establishing Credit After Bankruptcy
Lenders will expect borrowers not to be late with any monthly debt payments such as credit card payments and automobile loan payments after bankruptcy discharged date. Cannot be late on any payments after foreclosure and/or short sale.
Homebuyers buying home after bankruptcy can have prior bad credit but not late payments after discharge. Late payments after bankruptcy and foreclosure is the kiss of death. It will be difficult buying home after bankruptcy with late payments after bankruptcy or a housing event.
Most lenders will not approve for a mortgage to anyone who had any late payments after bankruptcy and/or foreclosure. Credit scores will improve as time passes. But you should also start rebuilding credit by getting 3 secured credit cards. Why 3 secured credit cards?
How To Re-Build and Re-Establish Credit With Secured Credit Cards
One secured credit card will improve the score, two secured credit cards will improve it better, but 3 secured credit cards will optimize and maximize your credit scores. Have 4, 5, 6, 7 or more secured credit cards will take on the same effect as having 3 secured credit cards.
The easiest and fastest way to re-build credit after bankruptcy is to get three to five secured credit cards and one or two credit rebuilder accounts. For maximum effect, each secured credit card should have at least a five hundred dollar credit limit. You can get credit builder account from credit union, banks, or www.self.inc.
Try to have the credit limits on secured credit cards no more than 10% balance of the credit limit and eventually reduce it down to a monthly $10 dollar balance on all three. The above tactic can improve credit scores by at least 70 to 100 points in a very short period of time. Never ever be late with any payments. Being late with one payment after bankruptcy and/or foreclosure can jeopardize getting a mortgage.
How To Maximize Credit Score and Re-Build Credit Buying Home After Bankruptcy
Buying Home After Bankruptcy is not as difficult as most home buyers think. Key is never late with any payments after a bankruptcy, foreclosure, short sale, and/or deed in lieu of foreclosure. As time passes, the old negative credit items that were included part of the bankruptcy will have lesser of an impact on credit scores.
A prior bankruptcy has no impact on mortgage rates. Many homebuyers think just because they have a prior bankruptcy they will get priced with a substantially higher mortgage rate. The team at FHA Bad Credit Lenders have helped thousands of borrowers get their credit over 700 FICO with one year after bankruptcy discharge.
Eventually will be automatically deleted from your credit report. Derogatory items remain on credit reports for a period of 7 years from the date of last activity. Chapter 7 Bankruptcy will remain on a consumer credit report for 10 years. Chapter 13 bankruptcy will stay on a consumer credit report for 7 years.
Buying Home After Bankruptcy With Non-QM Loans With No Waiting Period
There is no waiting period to qualify for NON-QM Loans after filing bankruptcy. However, anywhere between 10% to 20% down payment is required. The down payment requirement depends on the borrower’s credit scores and the elapsed time after the bankruptcy. Contact us for more details.
FHA Bad Credit Lenders has no lender overlays on government and conventional loans. We also carry hundreds of non-QM mortgage loan programs such as no-doc mortgage loans, asset-depletion, DSCR, stated-income loans, non-QM jumbo loans, and countless other non-QM and alternative lending programs.
To see if you can qualify for a mortgage after bankruptcy, please contact us at FHA Bad Credit Lenders at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at FHA Bad Credit Lenders is available seven days a week, evenings, weekends, and holidays.
