Buying House After Foreclosure With NON-QM Loans

This article covers Buying House After Foreclosure With NON-QM Loans

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Buying House After Foreclosure requires a mandatory waiting period with government and conventional loans. NON-QM Loans do not have waiting period requirements after foreclosure, deed in lieu of foreclosure, short sale, and bankruptcy. The waiting period requirements depend on the type of loan program. Buying House After Foreclosure is different than buying a home after bankruptcy and/or short-sale. The main difference between buying a house after foreclosure versus a short sale and/or bankruptcy is the start of the waiting period. The waiting period does not begin until the foreclosed property has the deed transferred to a different name other than the foreclosed homeowner.

Mortgage Guidelines When Buying House After Foreclosure

With the exception of non-QM mortgages, all loan programs have a mandatory waiting period after foreclosure, deed in lieu of foreclosure, short sale to qualify for home loans. Here are the general loan program guidelines when it comes to Buying House After Foreclosure, Deed In Lieu, Short-Sale, Bankruptcy. In this article, we will discuss and cover qualifying for a mortgage after a foreclosure or other housing events with non-QM Loans.

FHA Loans:

The waiting period after bankruptcy and/or housing events are the following on FHA loans:

• 3 year waiting period after foreclosure, deed in lieu of foreclosure, short-sale
• 2 year waiting period after Chapter 7 Bankruptcy discharged date

VA Loans:

The waiting period after bankruptcy and/or housing events are the following on VA loans:

• 2 year waiting period after foreclosure, deed in lieu of foreclosure, short-sale Chapter 7 Bankruptcy discharge date

USDA Loans:

The waiting period after bankruptcy and/or housing events are the following on USDA loans:

• 3 year waiting period after foreclosure, deed in lieu, short-sale, a bankruptcy discharge date

Conventional Loans:

The waiting period after bankruptcy and/or housing events are the following on Conventional loans:

• 4 year waiting period after a deed in lieu of foreclosure and Chapter 7 Bankruptcy discharge date
• 2-year waiting period after Chapter 13 Bankruptcy discharged date
• 4 year waiting period after Chapter 13 Bankruptcy dismissal date
• 7 year waiting period after standard foreclosure

Non-QM Mortgage Guidelines On Waiting Period Requirements

Non-QM Loans:

• No waiting period after a foreclosure, deed in lieu, short-sale, bankruptcy
• 10% to 30% down payment is required
• Down payment requirements depend on the borrower’s credit scores and the seasoning of the housing event and/or bankruptcy

When Does The Waiting Period Clock Start When Buying A House After Foreclosure?

The waiting period clock when buying a house after foreclosure and/or deed in lieu of foreclosure starts from the date the homeowner has been taken off the deed of the property and not the date the property surrender date.

• This means if a homeowner surrendered the home 10 years ago and the lender just transferred the deed to their name just now, the waiting period just started
• Therefore, the only home loan program this borrower will qualify for are Non-QM loans
• The transfer date of the deed is the waiting period start date
• All lenders that require the waiting period after a housing event will go by the recorded date of the housing event and not the surrender date
• With short-sales, the date of the short-sale is the waiting period start date
• The waiting period start date after bankruptcy is the discharged date of the bankruptcy and not the filing date

Borrowers who cannot qualify for government and/or conventional loans can qualify for Non-QM mortgages. There is no waiting period requirement after a housing event and/or bankruptcy. However, a larger down payment is required.

Benefits Of NON-QM Loans When Buying House After Foreclosure And Bankruptcy

Homebuyers no longer have to wait to buy a house after foreclosure and/or bankruptcy with Non-QM mortgages. However, a 10% to 30% down payment is required. Down payment requirement depends on the borrower’s credit scores and the seasoning after housing event and/or bankruptcy. There is no maximum loan limit on Non-QM loans. There is no private mortgage insurance required. Non-QM mortgage rates are higher than government and conventional loans. However, Non-QM mortgage rates can be in the 5% to 6% range with a larger down payment and paying discount points. With no private mortgage insurance requirement, non-QM mortgage rates can be slightly higher than conforming and government loans and the borrower’s monthly housing payments may not be too bad. For more information on Non-QM home loans and buying a house after foreclosure, deed in lieu, short-sale, bankruptcy with no waiting period, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.