Loans After a Credit Event
A recent bankruptcy, foreclosure, short sale, or run of late mortgage payments usually means a wait of several years before a conventional, FHA, or VA loan is possible. Some non-QM programs will consider a loan sooner, with more conservative terms and a higher cost.
Justin Lazzaro, NMLS #1229453 | Reasy Financial, LLC, NMLS #2446155 | Licensed in Arizona, Pennsylvania, Florida, and Texas
Who these programs fit
A credit event is a moment in time. These programs look at what caused it and what your finances look like now.
Borrowers who have recovered
Re-established credit, stable income, and money saved since the event make the strongest case.
Borrowers with a reason to buy now
If waiting out an agency timeline would cost you more than the higher price of the loan, it can make sense to move sooner.
Who it usually does not fit
If you are close to the end of an agency waiting period, waiting for a conventional, FHA, or VA loan usually costs less.
How qualifying works
1
We map your timeline
The type of event and the date it was discharged or completed decide which programs are open to you.
2
We match the tier
Most lenders use tiers. The more recent the event, the lower the loan-to-value and the smaller the loan amount they allow.
3
Income is documented
Full documentation, or bank statements for self-employed borrowers. Some lenders also accept 1099 income.
Lenders treat bankruptcy, foreclosure, short sale, and late mortgage payments differently, and each sets its own waiting periods. A prequalification is not a loan approval or a commitment to lend.
How it compares to other options
The choice is usually between buying sooner at a higher cost and waiting for a standard loan.
| Option | When it is available | Worth knowing |
|---|---|---|
| Non-QM loan after a credit event | Sooner than agency loans, depending on the lender and the event | Larger down payment, higher cost, and fewer loan features |
| FHA loan | After the FHA waiting period for your type of event | Lower cost, with more flexible credit standards than conventional |
| VA loan | After the VA waiting period, for eligible veterans | No monthly mortgage insurance |
| Conventional loan | After the longest waiting periods of the group | Usually the lowest cost once you qualify |
Three things to know before you apply
1
It costs more
Expect a larger down payment and a higher rate than a standard loan. The usual plan is to refinance once you qualify for one, and no one can promise when that will be.
2
Recent events mean tighter limits
The most flexible tiers come with a lower loan-to-value and a smaller maximum loan, and features such as interest-only payments are often not available.
3
Your payment history since the event matters
Late payments after the event are harder to overcome than the event itself. On-time housing and credit payments since then carry a lot of weight.
Guidelines change. I confirm current requirements with the lender before quoting anything.
Common questions about loans after a credit event
Short answers to common questions. Program rules vary by lender, so treat these as general guidance, not a loan decision.
How soon after a bankruptcy can I get a mortgage?
It depends on the chapter, the discharge date, and the lender. Agency loans have set waiting periods. Some non-QM programs consider shorter ones, with a larger down payment.
Does a foreclosure or short sale work the same way?
The idea is the same, but lenders set separate waiting periods for foreclosures, short sales, and deeds in lieu, and they are not always the same as for a bankruptcy.
What if I had late mortgage payments?
Some programs allow a limited number of recent late payments. The more recent and severe they are, the more conservative the terms.
Can I use bank statements to qualify?
With many of these lenders, yes. Bank statement income, and with some lenders 1099 income, can be used with a recent credit event.
Can I refinance later?
That is the usual plan. Once enough time has passed and your credit supports it, we look at moving you into a conventional, FHA, or VA loan.
Where do you offer these loans?
I am licensed in Arizona, Pennsylvania, Florida, and Texas, and I compare programs across multiple wholesale lenders.
Ready to talk it through?
Pick a time that works for you. We'll go over your goals and next steps, no pressure, just a conversation. Prefer to call or text instead? Reach me directly at (412) 638-4982, or book a quick Zoom if that's easier.
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Licensing
Justin Lazzaro, NMLS #1229453
Reasy Financial, LLC, Company NMLS #2446155
AZ Mortgage Banker License BK #2012302
FL Mortgage Lender License MBR6883
PA Mortgage Lender License 107748
TX Mortgage Company License 2446155
Licensed in Arizona (LO-2001846), Florida (LO71883), Pennsylvania (73668), and Texas
Contact
14100 N 83rd Ave, Suite B-230
Peoria, AZ 85381
