Traditional and Non-QM Mortgage During Chapter 13 Bankruptcy
This blog will cover qualifying and getting approved for a mortgage during Chapter 13 bankruptcy. Unsurprisingly, homebuyers and homeowners can qualify for a mortgage after bankruptcy. How about qualifying for a mortgage during Chapter 13 bankruptcy?
Borrowers can qualify for an FHA or VA mortgage during Chapter 13 bankruptcy repayment plan without the Chapter 13 bankruptcy being discharged. Need trustee approval. Has to be a manual underwrite.
Homebuyers can now qualify for an FHA or VA home mortgage during Chapter 13 bankruptcy repayment period after one year of filing Chapter 13. FHA and VA loans are the only two mortgage loan programs allowing borrowers to qualify for a home loan during the Chapter 13 bankruptcy repayment plan without the bankruptcy getting discharged.
Mortgage Waiting Period Requirements After Bankruptcy
Government and conventional loans have mandatory waiting period requirements after bankruptcy or foreclosure. Borrowers can qualify for a mortgage with no waiting period with NON-QM loans.
New NON-QM and Alternative Financing loan programs are now available for the owner and non-owner-occupied properties with no waiting period after bankruptcy and no income documentation. There are countless non-QM mortgage loan options for owner-occupant, second homes, and investment properties.
Non-QM Mortgage Brokers have mortgage loans for primary homes, second-home,s, and Investment loan programs with no income tax returns required. In the following paragraphs, we will cover getting approved for a mortgage during Chapter 13 bankruptcy. We will also cover qualifying for mortgage loans with no waiting period requirements with non-QM loans.
NON-QM and Investment Property Loans
NON-QM loans are where owner-occupant borrowers can qualify for a Mortgage After Bankruptcy And Foreclosure With No Waiting Period. There are various types of NON-QM loans:
- Mortgage After Bankruptcy And Foreclosure With No Waiting Period
- Bank Statement Mortgage Loans
- Asset-Based Loans
Hurdles Qualifying For Home Mortgage After Bankruptcy and Foreclosure
Homebuyers can qualify for home loans and investment loans after bankruptcy. The most common types of consumer bankruptcy are the following:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
Waiting Period Requirements After Bankruptcy And Foreclosure
Until the launch of NON-QM Loans and Alternative Financing loan programs, the only way to get qualified for a home loan after bankruptcy and foreclosure was to meet the waiting period after bankruptcy and foreclosure. Here are the waiting period requirements after bankruptcy to qualify for VA and FHA loans and Conventional loans:
- Waiting Period After Chapter 7 Bankruptcy discharge is two years on FHA and VA loans.
- Four years on Conventional loans
- There is no waiting period after the Chapter 13 Bankruptcy discharge date to qualify for VA and FHA loans.
- There is a two-year waiting period after the Chapter 13 Bankruptcy discharge date to qualify for Conventional loans.
- Consumers one year into a Chapter 13 Bankruptcy repayment plan can qualify for VA and FHA loans with the approval of a Trustee.
- There is a four-year waiting period to qualify for a conforming conventional loan after the Chapter 7 Bankruptcy discharge date.
- There is a four-year waiting period to qualify for conventional loans after the recorded date of a deed in lieu and short sale.
After the recorded foreclosure date, there is a seven-year period to qualify for a conventional loan.
NON-QM Loans
NON-QM loans are alternative finance loan programs where borrowers with prior bankruptcy and foreclosure and self-employed borrowers can qualify for home loans via non-conforming loan programs. Here are the non-QM loan programs Non-Qm Mortgage Brokers offers:
- Owner-occupied and non-owner owner-occupied loan programs
- No waiting period after bankruptcy and foreclosure
- Bank Statement Mortgage Loans for self-employed borrowers
- Non-Qm Mortgage Brokers offer 90% LTV Jumbo Mortgages With No Mortgage Insurance
- Jumbo mortgages with 500 credit scores
- Fix and Flip Loans with a 15% down payment plus 90 LTV construction financing with no tax returns and income verification required.
- Investment property loans with no income verification and no tax return required.
Blanket line of credit without income verification on seven or more investment units.
Qualifying For a Mortgage After Bankruptcy and Foreclosure With No Waiting Period
Consumers can now qualify for a home loan after filing for bankruptcy. Qualifying for a mortgage ssduring and after bankruptcy discharge often depends on the individual’s credit scores and the amount of down payment. Under the United States Bankruptcy Code, a consumer filing for bankruptcy must enroll and finish an approved credit counseling course. In addition to completing the credit counseling course, those filing bankruptcies need to provide the following documents:
- Two years of income tax returns
- Two years W2s
- Upon the completion of the credit counseling course and along with paycheck stubs and tax returns, bankruptcy petitioners are eligible to file for bankruptcy.
- Upon receiving the above documents, the bankruptcy attorney of the petitioner can file the bankruptcy petition.
In the event of urgency, an emergency bankruptcy petition can be filed.
Motion For Relief From The Stay
A motion for relief from the automatic stay is what creditors file to get approval from the U.S. Bankruptcy Courts to reinstate foreclosure proceedings and proceed with a vehicle repossession process. Consumers filing Chapter 7, where they surrender their vehicles and home, the bank can file a relief motion from the automatic stay.
They can legally continue the repossession of an auto and foreclosure proceeding of a home. For consumers filing Chapter 13 Bankruptcy and intending to keep their vehicles and home. The bankruptcy attorney will propose a restructuring plan for their debts and a repayment proposal for the Bankruptcy Trustee.
No-Doc Mortgage Loans For Owner and Non-Owner Occupant Properties
Homebuyers can qualify for a mortgage after bankruptcy and foreclosure with no waiting period at Non-Qm Mortgage Brokers. There are full-doc and no-doc loan programs for both owner-occupant and non-owner-occupant properties.
The next section will cover the basic qualifications for qualifying for a mortgage after bankruptcy and foreclosure with no waiting period. Qualify for a home or investment home loan one day after bankruptcy and foreclosure with a 10% to 20% down payment.
Non-QM Mortgage With No Income Tax Returns
The down payment depends on the borrower’s credit score. No income tax returns are required on investment property loans with no income verification bank statement mortgage loans. There are no tax returns required. Blanket investment property lines of credit are available—Bank statement mortgage loans.
