Purchase 1 day after a Foreclosure or Bankruptcy.
Mortgage Lenders Lower Waiting Period For Foreclosure , Short Sale, & Bankruptcy. Mortgage Lenders have change for mortgage borrowing after a significant derogatory event including bankruptcy, short sale, and foreclosure.
SIGNIFICANT BAD CREDIT DEROGATORY EVENTS INCLUDE:
- foreclosure
- short sale
- deed-in-lieu of foreclosure
- bankruptcy
- mortgage loan charge-off
Significant bad credit issues can affect a person’s credit score to drop more than 100 points or more. We can get you approved for a mortgage if for the past 12-24 months you can prove timely payment history.
e can even approve you 1 day after a Foreclosure or Bankruptcy.
BAD CREDIT PRIVATE MORTGAGE LENDERS
More and more we are beginning to see more and more private bad credit mortgage lenders in the market that have relaxed waiting periods for foreclosure,bankruptcy or short sale including deed in lieu of foreclosure. Today we are approving borrowers for a mortgage 1 day after a Foreclosure, Short sale or Bankruptcy.
These Bad credit loan approvals are not necessarily subprime high interest mortgage loans, they do have slightly higher interest rates, and higher closing costs. Portfolio mortgage loans are offered by private mortgage investors that are looking at other compensating factors, examples include timely rent payment history, timely 12 month trade lines, high credit scores, larger down payments, and future payments to cover the mortgage called reserves.
BAD CREDIT FHA MORTGAGE LENDERS
- 3 Years after Foreclosure– You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date out of your name.
- 2 Years After Chapter 7 Bankruptcy – You may apply for a FHA mortgage loan after your bankruptcy has been discharged for TWO (2) years with a Chapter
- 1 Year After A Chapter 13 Bankruptcy. You may apply for a FHA mortgage loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy
- Short Sale / Deed in Lieu – You may apply for a FHA mortgage loan 3 years after the sale date of your foreclosure. The fules for FHA short sale the same as a Foreclosure for now.
- Credit must be re-established no late payments in past 12-24 months, depending on hardship.
- FHA mortgage application date must be after the above waiting period to be eligible for FHA mortgage financing after hardship.
BAD CREDIT VA MORTGAGE LENDERS
- 2 Years after Foreclosure / Deed in Lieu – You may apply for a VA guaranteed loan 2 years TWO years after a deed or title transfer.
- 7 Chapter Bankruptcy– You may apply for a VA guaranteed loan TWO (2) years after a chapter 7 Bankruptcy
- 13 Chapter Bankruptcy – If you have finished making all payments satisfactorily, the lender may conclude that you have reestablished satisfactory credit. After 12 months If you have satisfactorily made a the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the VA mortgage lender may give favorable consideration.
- Short Sale – VA does not recognize a short sale as a derogatory event. If you are able to credit qualify for a VA mortgage loan, a short sale would not prevent you from being eligible for VA mortgage. VA Lenders usually require the same wait as FHA of 2 years.
- Credit must be re-established with a minimum 500 credit score. Note there is a high credit score. A low credit score. All lenders use the number in the middle and it does not matter which agency is in the middle score comes from..
- VA mortgage application date must be after the above waiting period to be eligible for FHA mortgage financing after hardship.
BAD CREDIT USDA MORTGAGE LENDERS
- Foreclosure – You may apply for a USDA rural loan THREE (3) years after a Foreclosure
- Short Sale / Deed in Lieu of Foreclosure – If you had big issues the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640. Over 640 your UW will make the call but typically not less than one year.
- Bankruptcy – You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankrupt.
- USDA mortgage application date must be after the above waiting period to be eligible for FHA mortgage financing after hardship.
BAD CREDIT CONVENTIONAL MORTGAGE LENDERS
- 7 years after Foreclosure/Short Sale/ Deed In Lieu – You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,
- 4 years after a Chapter 7 Bankruptcy – You may apply for a Conventional mortgage loan after your Chapter 7 bankruptcy has been discharged for a full 4 FOUR TWO (2) years from the discharge of a Chapter 13
- 2 years after a Chapter 13 Bankruptcy – You may apply for a Conventional mortgage loan after your Chapter 13 bankruptcy has been discharged for a full 2 years from the discharge of a Chapter 13
- Credit must be re-established with a minimum 620 credit score for conventional mortgage approvals.
- Date of Credit Report must be after the above waiting period to be eligible for Conventional financing after hardship.
BAD CREDIT JUMBO MORTGAGE LENDERS
- Bankruptcy – You may apply for a Jumbo mortgage loan once any chapter of bankruptcy has been discharged for FOUR (4) years, FIVE (5) years if multiple bankruptcy occurs on credit profile.
- Foreclosure – You may apply for a Jumbo mortgage loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,
- Short Sale / Deed in Lieu of Foreclosure – You may apply for a Jumbo mortgage loan:
- SEVEN (7) Years from Short Sale or Deed in Lieu of Foreclosure with Maximum 80% Loan to Value
- NOTE: There are investors out there that will allow you to buy again in FOUR (4) years after a short sale, but expect higher rates, higher fees, and possibly larger down payment requirement. Jumbo lenders have not yet loosened up the qualifying guidelines for buying after a hardship.
- It may make financial sense to consider a portfolio Jumbo lender that offer high rates, so that you can take advantage of today’s market. Once your short sale is seasoned, refinance into a more favorable, longer term loan.
NOTE: If hardship is the result of an extenuating circumstance, waiting periods may be reduced. Contact lender for details.
Recently, Mortgage Lenders changed its mortgage rules for borrowers with a recent bankruptcy, pre-foreclosure, or short sale.
