Credit Event Home Loan
If you've had a recent credit event, such as bankruptcy or divorce, NASB's Credit Event Home Loan looks at your complete financial picture to help you secure a mortgage.
NASB's Credit Event Home Loan helps borrowers with unique circumstances.
Life doesn't always go as planned, and sometimes certain financial events can impact your ability to qualify for a mortgage loan despite having the money to make a down payment. Buying a home may feel out of reach if you've experienced a setback, such as bankruptcy. At NASB, we understand these unique situations and are here to listen and help. Our Credit Event Home Loan focuses on your overall financial story, not just the challenges you've faced. We even allow outside gifts to help cover your down payment and closing costs.
Common credit events we consider include:
- Bankruptcy (with a minimum of one year from the bankruptcy discharge date)
- Divorce
- Medical bills
- Loss of a loved one
Reach out to us today, and let's explore how we can make homeownership possible for you, even after a credit event.
Credit Event Home Loan Guidelines and Requirements
- 30% minimum down payment1
- Eligible one year after bankruptcy
- Must have a documented 'credit event' that has impacted their credit
- The minimum loan amount is $175,000; the maximum is $500,0001
- A maximum debt-to-income ratio of 45%
- Must have four months of PITIA reserves
- Purchases only, 30-year fixed
Credit Event Loan FAQs
The FAQs below summarize NASB's current Credit Event Loan program, features, and underwriting approach, including purchase‑only scope, minimum loan amount, documentation, and timeline.
What is NASB’s Credit Event Home Loan?
NASB’s Credit Event Home Loan is a Non‑QM mortgage designed for borrowers with a recent credit setback (bankruptcy, divorce, medical bills, loss of a loved one) who can document their ability to repay. Generally, credit‑event programs evaluate the borrower’s full financial profile rather than strict agency waiting periods.
When am I eligible after a bankruptcy?
NASB considers borrowers at least one (1) year after the bankruptcy discharge date, subject to full underwriting. Non‑QM programs may allow shorter seasoning than traditional agency loans.
What down payment is required?
NASB requires a minimum 30% down payment; no PMI is required on this program. Higher down payments and strong equity help offset risk in credit‑event lending.
Are gift funds allowed for down payment and closing costs?
Yes—NASB allows outside gift funds to help cover down payment and/or closing costs on the Credit Event Home Loan. Many Non‑QM programs permit gift funds with documentation of donor and source.
What loan purposes are eligible?
NASB’s Credit Event Home Loan is available for purchase transactions; it is not offered for all refinance scenarios. Program availability by purpose varies across Non‑QM offerings.
Is there a minimum loan amount?
Yes—NASB requires a minimum loan amount of $175,000 for Credit Event Home Loans (exceptions may apply in select local markets). Non‑QM products commonly set minimum loan amounts aligned with portfolio guidelines.
What credit events does NASB consider?
NASB reviews files involving bankruptcy (≥1 year from discharge), divorce, significant medical bills, or the loss of a loved one, among other documented life events. Lenders typically consider documented one‑time or extraordinary events when assessing risk.
How is my overall file evaluated?
NASB evaluates your complete financial picture—income stability, assets, credit re‑establishment, and property details—rather than a single score. Holistic Non‑QM underwriting weighs compensating factors alongside the credit event.
Do I need mortgage insurance (PMI)?
No—NASB’s Credit Event program does not require PMI with the minimum 30% down. Non‑QM pricing and equity generally replace PMI requirements.
Can I use gift funds only, or do I need a borrower contribution?
NASB permits outside gifts; your loan officer will outline any required borrower contribution based on program specifics. Gift allowances and minimum borrower contributions vary by lender and risk profile.
What property types are eligible?
NASB follows its Non‑QM property eligibility standards; your loan officer will confirm allowed occupancies and property types for your scenario. Eligibility by property type can differ across Non‑QM programs and locations.
How fast can I get a decision?
NASB offers responsive reviews once a complete application and documentation are received; timelines depend on file complexity. Turn times vary with documentation speed and appraisal scheduling.
Looking for more detailed answers?
Explore our complete Credit Event Loan FAQs, including eligibility after bankruptcy, minimum down payment, gift funds, loan limits, and process.
