Credit Event Home Loan FAQs

NASB evaluates Chapter 7 or Chapter 13 histories once seasoning, and re‑established credit is documented per program guidelines. Lenders typically review chapter type, discharge status, and payment history.

NASB’s program may offer eligibility sooner (e.g., one year after bankruptcy) with a larger down payment and compensating factors. Non‑QM bridges gaps for borrowers who are not yet eligible for conventional, FHA, or VA timelines.

NASB reviews divorce impacts within your overall financial narrative, including current liabilities, support obligations, and assets. Underwriting considers documentation clarity and current ability to repay.

NASB evaluates medical‑bill impacts alongside reserves, income stability, and equity to assess present risk. Documented life events with strong compensating factors can support approval.

NASB may require post‑closing reserves depending on risk layering (credit event, LTV, property type). Non‑QM often uses reserves to offset credit‑event risk.

NASB typically requests income/asset verification, credit re‑establishment evidence, bankruptcy discharge documents, and purchase details. Complete, consistent documentation supports faster underwriting decisions.

Yes—NASB requires standard gift letters and source verification for gifted funds used toward down payment/closing. Gift funds must be documented to satisfy ATR and anti‑fraud standards.

No—PMI is not required on NASB’s Credit Event program with 30% down. Equity and pricing typically replace insurance in Non‑QM programs.

NASB’s Credit Event program is designed primarily for purchases; your loan officer can confirm any refinance availability as policies evolve. Non‑QM refinance eligibility varies by product and market conditions.

NASB prices Credit Event Home Loans competitively within Non‑QM; rates may be higher than agency loans due to risk and flexibility. Pricing reflects risk layers such as seasoning, LTV, FICO, and reserves.

NASB’s product availability can vary by state and metro; your loan officer will confirm current eligibility for your property’s ZIP code. Non‑QM availability may exclude certain states or metro areas based on portfolio limits.

NASB evaluates credit holistically; your loan officer will share any current score guidance in context of LTV and reserves. Score floors in Non‑QM often interact with down payment and compensating factors.

Yes—NASB allows co‑borrowers; combined income, credit, and assets are reviewed holistically. Adding a qualified co‑borrower can improve overall file strength.

NASB assesses combined impacts and recovery progress; stronger equity and reserves can help offset layered risk. Non‑QM underwriting weighs the totality of factors and recent stability.

NASB evaluates income, assets, liabilities, and credit history to document ATR consistent with Non‑QM rules. Responsible ATR documentation is required even for flexible Non‑QM programs.

NASB’s timeline is comparable to standard mortgages once a complete file is submitted; appraisal and documentation drive speed. Providing full documents upfront helps shorten turn times.

NASB follows Non‑QM collateral standards; confirm eligibility for single‑family, warrantable condos, and other property types with your loan officer. Eligibility can differ for condos, manufactured housing, or unique properties.

NASB can discuss future refinance options into agency programs if/when you meet waiting periods and pricing improves. Many borrowers use Non‑QM as a bridge to traditional financing once eligible.