Member Michelle McCue
MemberForum Replies Created
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A Chapter 13 payment history can not be use for non-qm, but it is certainly used for FHA & VA.
Many borrowers are surprised they may have a tradeline still open from before the bankruptcy. Many have an account such as an auto loan paid outside the BK plan. We have can help document that if that is the case. If not, we can work with the borrower to secure tradelines. Call us, we can walk you through the process of opening secured cards and credit building accounts and increasing your scores.
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Down payments vary by program. We have bank testament loans that allow 10% down with a score over 740.
15% down payment is possible as low as 660
Scores down to 550 require 35-40% down, which may sound daunting, but many families are fortunate enough to have a strong equity position in their current home, or savings. We can thankfully utilize their strong position to move them forward.
We can even use our non-qm programs to work around recent mortgage lates. Alternative programs are a great tool!
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Gus,
This is a great question. We have programs with no waiting period after discharge from both a Chapter 13 or Chapter 7 bankruptcy. Scores can be as low as 550 at one of our lenders, which is amazing. It gives so many families the ability to rebuild after a housing or credit event.
Lenders will require at least one tradeline open for 24 months, or three tradelines open for 12 months. Down payment will vary based on score and debt to income ratios. We even have options that do not require a debt to income ratio or income documentation,
The options post bankruptcy are abundant if you have the right advocates.
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Eric is so right. FHA does allow for lower credit scores and has a shorter waiting period after bankruptcy. Other advantages of FHA include –
The ability to secure a home loan during a Chapter 13 bankruptcy after 12 or more onetime payments to the Trustee
Files can be manually underwritten if they meet the guidelines
Higher/more forgiving debt to income limits (46.9/56.9)
Downpayments as low as 3.5% on single family and multifamily homes