Call to get Pre-Qualified: 800-806-9836 x280

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How soon can you qualify for a mortgage after Chapter 7 bankruptcy?

According to statistics released by the Administrative Office of the U.S. Courts, from 2015-2019 there have been over 2.5 million Chapter 7 Bankruptcies filed. However, even with a previous Chapter 7 Bankruptcy, you can still qualify for a mortgage after a specified waiting period.

Waiting periods differ between USDA, FHA, VA, and Conventional loan programs and in today’s video, I’ll compare them side by side.

Chapter 7 Bankruptcy

How soon can you qualify for a mortgage after Chapter 7 bankruptcy in Florida?

In many cases, a Chapter 7 bankruptcy can happen outside of the homeowner’s control such as a major illness, divorce, or death of a spouse.

A home buyer who previously filed for bankruptcy and is once again trying to qualify for a mortgage is sometimes called a Boomerang Buyer. These Boomerang Buyers are still a large and valuable portion of the home buying market.

With that being said, once a Chapter 7 Bankruptcy has been discharged, waiting periods will apply and determine how quickly you can qualify for a mortgage.

Waiting Periods for Chapter 7 Bankruptcy

Currently, the published Chapter 7 Bankruptcy qualifying guidelines for USDA, FHA, VA, and conventional are as follows:

VA Loans

  • VA Loans are the most lenient.
  • They allow for 2 years after a bankruptcy discharge.

Florida USDA Loans after Bankruptcy

USDA Loans

  • USDA Loans require 3 years after a bankruptcy discharge.
  • However, exceptions can be possible.
  • My office has successfully processed and closed the USDA waiting period exceptions.

Conventional Loans

  • Conventional Loans under Fannie Mae and Freddie Mac have a 4 year waiting period for mortgage qualifying after a bankruptcy discharge.

FHA Loans

  • FHA loans have a 2 year waiting period after a bankruptcy discharge.
  • Be extremely cautious when a mortgage is included in the bankruptcy.

Mortgage Included in a Chapter 7 Bankruptcy

Florida USDA, VA, FHA, and Conventional Loans after BankruptcyIf there was a mortgage discharged through bankruptcy, it’s vital to find out when the deed to the property actually transferred out of their name.

While FHA guidelines only have a two year waiting period after a Chapter 7 Bankruptcy, once the deed transfer actually occurs, foreclosure waiting periods will also apply based on that date – not that date of the bankruptcy discharge!

Thankfully, USDA, VA, and Fannie Mae guidelines are more lenient when a mortgage was included with a Chapter 7 Bankruptcy. They do not restart the foreclosure waiting period based on the deed transfer date.

USDA Waiting Period Exceptions

My office has been able to successfully process USDA loan exceptions after a Chapter 7 Bankruptcy. These exceptions are on a case by case scenario and based on individual circumstances.

Recent Denial?

If you are trying to qualify for a mortgage and have recently been denied due to a previous Chapter 7 Bankruptcy, please take advantage of our FREE Second Opinion Service (SOS).

Do foreclosure waiting periods depend on the mortgage type?

After a foreclosure, how soon can you qualify for a mortgage in Florida, Alabama, Tennessee, or Texas?

In working with so many of our customers over the years, we have found that foreclosures often occur due to circumstances outside of the homeowner’s control, rather than financial mismanagement.

With that being said, once a foreclosure has been finalized, a waiting period is required before another mortgage can be provided.

However, USDA, FHA, VA, or Conventional loan waiting periods are different. That’s why in today’s video, I’ll compare the programs side by side and keep you in the know about this important topic.

After a foreclosure, how soon can you qualify for a mortgage?

What are foreclosure waiting periods?

A waiting period determines how quickly you can qualify for a mortgage after an event such as a foreclosure, bankruptcy, or short sale and can vary depending on the mortgage type you are attempting to qualify for.

Presently, the published foreclosure guidelines for VA, USDA, FHA, & Conventional waiting periods are:
What are USDA Foreclosure Waiting Periods in Florida, Alabama, Tennessee, or Texas

  • VA Loans: 2 years after a foreclosure
  • USDA Loans: 3 years after foreclosure (Exceptions can be possible!!!)
  • FHA Loans: 3 years after a foreclosure
  • Conventional (Fannie Mae and Freddie Mac): 7 years after a foreclosure

Are USDA Foreclosure exceptions possible?

As noted above, USDA loan exceptions are possible after foreclosure, but depend on the on the factors involved and will be on a case by case basis.

However, due to our USDA expertise and experience, the “Metroplex” team has successfully approved USDA foreclosure exceptions over the years.

What needs to be checked?

Do Texas, Alabama, Tennessee, or Florida foreclosure waiting periods depend on the mortgage type

When you have had a previous foreclosure on a government loan such as VA, USDA, or FHA, it’s vital for your lender to check the CAIVRS database.

The CAIVRS database documents liens, defaults and other outstanding debt owed to federal agencies.

This is crucial because an outstanding claim could stop your loan application from proceeding.  If there is a claim reporting a previous foreclosure, be prepared to wait for clearance prior to qualifying for another government loan.

USDA, VA, FHA, and Conventional Foreclosure Guidelines

Remember, the required waiting period after a foreclosure will vary and depends on the mortgage type with any exceptions being possible on a case by case basis.

If you have recently been denied for a mortgage because of a previous foreclosure, please take advantage of our free Second Opinion Service (SOS) which is great for both new pre-qualifications and existing transactions.

Lastly, you can always find more FREE USDA resources on our downloads page. It’s valuable information, including our USDA Blueprint for Success!

What is the Closing Time on A USDA Loan?

How long is the USDA loan process? It is common for us to receive questions on how long it takes to close a USDA loan, and in today’s short video we are going to dive into the details and keep you in the know!

Have you had a chance to view our FREE USDA resources page? These free guides are designed to help walk you through the USDA loan process and are a great educational resource for both home buyers and their agents.

How Long Does it Take to Close on a USDA LoanClosing Time

Many banks, lenders, or credit unions are not USDA approved, therefore they must submit to a 3rd party USDA approved lender to handle the underwriting process. This is obviously less efficient and because it is not a streamlined process it customarily takes longer to complete.

As a USDA approved lender, we have the ability to work directly with realtors, home buyers, and then with  USDA field offices when submitting for approval. This provides us with the ability to manage the entire loan process from start to finish at our office.

In short, as a USDA approved lender, this permits us to streamline the process so closing on a USDA loan becomes much faster.

So, are you working with an actual USDA Approved Lender? Here is a link to find out: USDA Approved Lender List

Approved Lender

Tampa FL USDA Approved Lender List

Being an approved USDA lender means the following events take place ALL under one roof:

  • Pre-Qualification
  • Loan Application
  • On-Site Underwriting and Loan Approval
  • Submitting the file to USDA
  • Ordering closing documents, and
  • Loan Funding

This type of control combined with giving you the same point of contact throughout the process allows us to save time where possible and keep all parties on the same page.

On the other hand, if you’re not working with a USDA approved lender prepare yourself for a longer time commitment. They will have to submit to another lender who has USDA approval to underwrite, approve, and submit the files to USDA. That’s time-consuming and another source for delays during the process.

Approval is CriticalTampa Florida USDA Approved Lender List

In Summary, while many may offer the USDA program, it is important to find out who has the required experience to help navigate the USDA loan approval process successfully. 

It may sound funny, but we truly eat, breathe, and sleep USDA Loans each and every day because we understand the tremendous value that this program brings to our rural communities.

800-806-9836 Ext. 280
SeanS@MPLX.org

Have questions? Call or email to take advantage of our free 2nd opinion service which is great for those existing transactions.

Make it a great day, and I look forward to seeing you right here for the next tip of the week!

P.S. – You can also download our “USDA Blueprint for Success” by CLICKING HERE

Tampa FL USDA Approved Lender List

Do you need to prove rental history in order to qualify for a USDA loan?

Everyone’s USDA qualifying situation is different and rental history is one component of that. That’s why today we are focusing on when rental history is a requirement and when it is not.

Remember to make sure you are working with a lender that understands the USDA program! Keep in the know with our free USDA resources. Download them all here!

Do USDA Loans Require Verification of Rental History

USDA Loan – Rental History Requirements

As a starting point, USDA guidelines state that in cases where the qualifying credit score is below 680 and there is rental payment history, the lender should obtain a rent payment reference either as:

  • Part of the credit report, or
  • Directly from the landlord, or
  • Through canceled checks covering the most recent 12 months prior to the loan application.

As USDA guidelines state, it’s the “lender’s responsibility to confirm the applicant’s history of payment towards housing expense is acceptable”.

The documentation to prove rental history is dependent on how rent is paid and the type of landlord you make the payments to. Just note, when an individual is living with family or rent-free, they do not have a verifiable rental payment history.

Remember, “one rent or mortgage payment paid 30 or more days late within the last 12 months is an indicator of unacceptable credit”, unless further consideration is used due to extenuating circumstances.

When is Rental History Not Required for a USDA loan?

Here are the situations where a USDA loan would NOT require verification of rental history:

  • USDA Applicants with credit scores of 680 and above are not subject to verification of rent or housing history
  • USDA Loans processed through the GUS underwriting system that receive an “Accept” response are not subject to verification of rent or housing history.

Tampa FL USDA Approved Lender List

In summary, USDA loans don’t always require verification of rental history, but when they do, it’s dependent on how your rent is paid and the type of landlord you make the payments to.

Have you been denied for a USDA loan due to rental history?

If you have been denied for a USDA loan due to verification of rental history, please call or email us today and get access to a free expert second opinion!

SeanS@MPLX.org

(800) 806-9836 x 280

P.S. – You can also download our “USDA Blueprint for Success” by CLICKING HERE

Tampa FL USDA Approved Lender List

How can you still qualify for a USDA loan if your credit score suddenly drops?

Your credit score just dropped, how can you still qualify for a USDA Loan?Just because your credit score took a recent drop, doesn’t mean it’s the end of the road for a USDA mortgage. In fact, it’s possible to increase that credit score in less than a week!  As you can imagine, this has the potential to be a powerful tool for those trying to qualify for a USDA loan.

In today’s video, I’ll show you how Rapid Rescoring can be a great resources when your credit suddenly drops. This is ideal for both pre-qualifications and those who are already under contract experiencing financing difficulties.

A Great Solution

Rapid Rescoring, also known as credit rescoring, is fantastic for helping to maximize the built-in potential of a borrower’s credit profile. This is especially true during these scenarios…

  • Upfront Pre-Qualifications
  • Current transactions that are already under contract, but are experiencing qualifying problems
  • USDA, VA, FHA, or Conventional Loans

3 Steps to Rapid Rescoring

Tampa FL USDA Approved Lender List

Rapid rescoring is powerful! So let’s dive in to see how the process works.

1. Step One:

  • The credit report is analyzed for any potential improvements through a manual review and automated credit score simulation software.
  • We then determine how much of a potential increase in score can be achieved and what actions need to occur.

It is important to note, that by utilizing credit simulation software, we are helping to maximize a borrower’s built-in credit potential based on the current credit profile they already have.  This is NOT credit repair and should not be thought of as a solution for situations that may need extensive repair.

2. Step Two:

Once the suggested actions have been taken, the customer calls their credit card or finance company and requests a balance letter or other account documentation. Once this has been received, we begin the final step.

3. Step Three:

We then submit the documentation to our credit vendor who works directly with the credit bureaus to update the account. Once the updates are complete, we are given notification to reprocess a new credit report.

The process can take as little as 3-5 business days to complete after receipt of the creditor documentation but can take longer depending on the number of accounts.

Sebring FL USDA LoansHelpful Tips

Here are a few helpful reminders about rapid rescoring:

  • There is NO additional charge for this service.
  • It works best when paying down credit card account balances, but not limited to that solely.
  • This is NOT credit repair and we are NOT a credit repair company.
  • Results are not guaranteed & can vary based on differences within each credit report.
  • Depending on the number of accounts, prepare for longer processing times.
  • REMEMBER, that a certain credit score does not guarantee an approval and minimum credit conditions will apply in regards to payment history, adverse accounts, and an overall history that shows the applicant has a willingness to pay their obligations.

Experience and Expertise

We are known for our experience and high customer service levels. As an approved USDA lender, Metroplex Mortgage Services is proud to serve both our rural and military communities.

Just call or email if you have any qualifying questions or to take advantage of our free 2nd opinion service which is great for those existing transactions.

Make it a great day and I look forward to seeing you next week!

SeanS@mplx.org
(800) 806-9836 Ext. 280

 

What Are Current USDA Student Loan Guidelines?

As we all know, student loan debt can have a major impact on mortgage qualifying. In today’s topic, I will explain how you qualify for a USDA loan with student loans and discuss the recent qualifying improvements. Knowing these details could mean the difference between home ownership or a missed opportunity.

As we all know, 2nd opinions are always important, so if you have financing questions and are working with another lender, we offer this free service where you can get access to an expert 2nd opinion.

So without further delay, let’s get started with the details!

How Do You Qualify for a USDA Mortgage with Student Loans?Student Loan Debt On the Rise

Unfortunately, the fact is that qualifying to buy a home with student loan debt is becoming a bigger challenge each and every day and this is not just a problem for First-Time Homebuyers.

While many of us may say that seems like common sense, the actual numbers are somewhat staggering. In a February 2017 article by Forbes it reported that “Student loan debt is now the second-highest consumer debt category” and “there are more than 44 million borrowers with $1.3 trillion in student loan debt in the U.S. alone”!

Now, after we all have taken a deep breath, let’s get into the details of what are the USDA student loan guidelines for student loan debt.

Guidelines

Tampa FL USDA Approved Lender List Under prior guidelines, USDA loans required the following calculation:

  • Fixed payment student loans which also include a fixed interest rate and repayment term may use that payment to qualify.
  • Further, if it was a non-fixed payment loan such as deferred, Income-Based Repayment (IBR), Graduated, Adjustable, or other types of non-fixed repayment agreements, one percent (1%) of the loan balance would be calculated for the qualifying monthly payment.

Additionally, because many non-fixed payment type student loans require only a minimal monthly payment, most would have to utilize the 1% calculation… but guidelines have recently changed for the better!

Great News!

Tampa FL USDA Approved Lender List

However, now for the good news, USDA guidelines were recently updated and now allow the underwriter to calculate the “higher of one-half percent (.50%) of the loan balance or the actual payment reflected on the credit report” for those non-fixed payment student loan repayment plans.

As you can see, because of this reduced calculation and added flexibility, this automatically provides a homebuyer with increased USDA qualifying ability!

In summary, when trying to qualify for a USDA loan with student loans be prepared to calculate 1% of the outstanding balance towards your qualifying ability unless you can get proper documentation that verifies you are on some type of acceptable fixed repayment plan.

Don’t Forget

Remember, we are unique because as a USDA approved lender, we have dedicated systems in place for USDA processing from pre-qualification through closing combined with high level experience to give you the advantage.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

SeanS@mplx.org
Toll Free: 800.806.9836 x280

Let’s make it a great day, and I look forward to seeing you right here for the next tip of the week!

What repairs can be financed with a USDA loan?

USDA guidelines were recently updated and now allow a wider range of possible repairs and in today’s video, I will explain both how it can be possible to finance home repairs with a USDA loan along with eligible types of repair scenarios.What repairs can be financed into a USDA loan?

Also, if you have not yet done so, please download our USDA Blueprint for Success. This educational resource helps break down the USDA process step by step and is great for both Realtors and home buyers alike!

USDA Repair Guidelines – after closingCan you include repairs with a USDA loan in Florida?

Previous USDA guidelines for repairs that could be completed after closing included both roof and plumbing repairs as specific examples that could not be escrowed and repaired after closing.

However, updated USDA guidelines now permit a wider range of eligible repair types that no longer specifically restrict roof or plumbing repairs.

Eligible types of repairs include but are not limited to:

  • Plumbing, Flooring, A/C Units, and also Roof Repairs
  • Any type of repair that does not affect the livability or safety of the home

Repair costs may not exceed the LOWER of either 10% of the proposed loan amount or $10,000.

USDA & VA NO DOWN Payment New Construction Loans for Modular and Manufactured Homes in FloridaIn addition:

  • Contractor invoice will be required for all repairs
  • No self-help allowed
  • Repair work to be completed within 30 days after closing
  • Appraised value must be high enough to support the new loan amount with repairs
  • Repair funds are then taken from the loan and escrowed with the title company at closing

The term “escrowed” means being able to deposit the repair money into a third party’s account, usually a title company or closing attorney, where it will be held post-closing until further instructed by the lender to disburse the funds.

Also, there will be a required 50% deposit of the total repair cost due at time of closing.  This is allotted to cover any potential cost overruns and can be from either the buyer or seller, but may not be financed.

Repair Success

After successful completion of the required repairs are documented by a final inspection and approved by underwriting, the release of funding from the title company for contractor funds and the 50% deposit occurs.

Tampa FL USDA Approved Lender ListIn summary, through the ability to finance home repairs with a USDA loan, it allows for an escrow repair option which can pinpoint specific repair items and allow them to be financed into a USDA loan

I realize that we covered a lot today and even though not all lenders specialize in USDA loans, because of our unique experience and expertise with the USDA program we are able to help homebuyers make the most of their qualifying ability.

As a top ranked USDA Approved Lender, we are here to help so just call or email to discuss your scenario and let us show you the “Metroplex” difference!

SeanS@MPLX.org
(800) 806-9836 Ext. 280

Make it a great day! I look forward to seeing your right here for the next tip of the week.

Have you been told that USDA loans are “out of money”?

Will your closing being delayed because the USDA is “out of money”?

Each year around this time we receive calls asking if the USDA LoWhy do lenders say USDA out of money?an program is “out of money”, and because there is so much misinformation about our topic today, this short video will share the facts that you need to know and help set the record straight.

Also, if you have not already done so, don’t forget to download our USDA Blueprint for Success.

This is a great educational resource for the real estate community and is designed for both homebuyers and their Realtors.

Has a loan officer told you that USDA is “out of money”?

Just to give a brief background on our topic today, the USDA fiscal year runs from October 1st until September 30th and at the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time –approximately two weeks.

However, as many have been led to believe, this does not meant that that the USDA program is stopped in its tracks, but instead during this temporary lapse in funding,  USDA Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.Tampa FL USDA Approved Lender List

So, what does this mean to homebuyers and Realtors?

Quite simply, depending on how your lender is set up to do business at this time will determine if they are able to continue processing and closing USDA loans without interruption.

The good news is, at Metroplex Mortgage Services it is business as usual as we continue to accept applications, process, and fund USDA loans without delay!

Here is an overview of what to expect at this time of the year:

  1. As a USDA Approved Lender,  we will continue to submit applications for purchase and refinance loan transactions to USDA;
  2. USDA Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;
  3. Upon receipt of the USDA conditional commitment, loans will continue to close as scheduled;
  4. Then, when funds become available, USDA Rural Development will obligate (reserve) funds for Conditional Commitments that were issued for loans subject to the availability of commitment authority; and
  5. Once these loans are obligated, USDA Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified and all conditions of the Conditional Commitment are satisfied;

Remember, 2nd opinions are always important (especially around this time of year), so if you have USDA financing questions and are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are already in progress.

 

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

(800)806-9836 Ext. 280
SeanS@MPLX.org

As a USDA approved lender, Metroplex Mortgage Services has expertise with this unique program, and we are able to walk both homebuyers and Realtors through the process step by step.

Don’t forget, here is the link to our USDA Blueprint for Success:

Tampa FL USDA Approved Lender List

Is PMI required on a USDA loan?

Do you need Private Mortgage Insurance (PMI) with a USDA Loan?Today’s video will answer the question if USDA loans have PMI and keep you in the know about terminology and key differences between USDA, FHA, and Conventional loans.

If you have not yet done so, please download for our USDA blueprint for success with the link below. This free guide is a great resource to walk you through step by step through the USDA qualifying process.

Do USDA Loans have PMI?

As a starting point and to clarify, PMI (private mortgage insurance) exists on conventional loans in cases of less than 20% down payment and it has a variety of different ways of how it can be paid.

Also, under the Homeowner’s Protection Act, PMI can be terminated either by request or automatically when your balance is paid down to or below 80% of the original home value.

Now, MIP (mortgage insurance premium) is found on FHA loans and is paid monthly.

Does a USDA Loan have PMI

Also, remember that when you have less than 10% down payment on an FHA loan, you will be required to pay the mortgage insurance for the life of the loan.

With down payments of 10% or greater, FHA mortgage insurance will be removed after 11 years.

However, in the case of USDA Loans, they do not technically have mortgage insurance, but instead have an annual fee and even though it is for the life of the loan, it happens to be over two times lower than that of FHA’s monthly mortgage insurance!

Here is an example to help show you the difference in monthly costs between FHA and USDA:

FHA: .85% X $100,000 = $850 / 12 = $70.83 per month

USDA: .35% X $100,000 = $350 / 12 = $29.17 per month

Does a USDA Loan have PMI

Yes, it is true, even though USDA loans allow for NO Down payment their borrowing costs are better when compared to FHA which requires a minimum down payment.

And don’t forget that your closing costs can be financed with a USDA loan when the appraised value is higher than your purchase price, which is a benefit that FHA will not allow.

Whether it be FHA, VA, USDA, or Conventional – Just call or email to discuss your scenario and let us show you the “Metroplex” difference.

800-806-9836 Ext. 280
SeanS@MPLX.org

Just call or email if you have any qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions.

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

How does a flood zone impact USDA loan eligibility?

For those who haUSDA Flood Zone Requirementsve dealt with this situation in the past, updated USDA guidelines have implemented a key change that will make a significant impact when moving forward on existing properties located in flood zones.

Today’s video tip will keep buyers, sellers, and realtors in the know when USDA financing is involved with a property in a flood zone.

If you are thinking about a USDA loan and the property you have found in  Florida, Alabama, Tennessee or Texas is in a flood zone, there is good news!

USDA loan flood zone florida

Review of Previous USDA Requirements

Prior to 12/1/14, USDA guidelines  required the following when a property was located in a Special Flood Hazard Area (SFHA):

“A flood elevation certification is also required to ensure the first floor of habitable space (including basements and mechanicals located in crawl spaces) is above the 100 year flood zone elevation.”

At best this could be a tedious process and at worst even if flood insurance was available, being able to move forward was contingent on receiving an acceptable flood elevation certificate as mentioned.

Updated USDA Requirements

Tampa FL USDA Approved Lender list

Now, we can see another positive change under the updated USDA 3555 regulations which modernize the flood insurance guidelines.  Now, they simply require that existing dwellings are eligible if flood insurance is available for the community through:

Assuming the homebuyer is able to purchase acceptable flood insurance, the need for the additional step required for calculating the base flood elevation is no longer needed for existing properties.

However, obtaining an acceptable flood elevation certificate is still the requirement for new construction properties.  If you have questions on how to qualify for a USDA loan on a new construction property, we have a high level of experience on these transactions so please call me team to discuss your questions today.


It is important to not get bogged down into the details on today’s video tip, but instead take away the positive change which now simply requires the need to for the homebuyer to obtain acceptable flood insurance on the property much like other programs require.


Remember to just call or email to discuss your scenario and let us show you the “Metroplex” difference.

800-806-9836 Ext. 280
SeanS@MPLX.org

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

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