Mortgage After A Loan Modification
A past loan modification does not have to end your plans to buy or refinance. At least one conventional program has no waiting period with an automated approval, and other programs look at the payments you have made since.
What a modification still allows
Each rule below comes from the written guidelines of a program we place loans with.
- At least one conventional program has no waiting period after a modified loan when the automated underwriting system approves the file.
- FHA reads late payments on a modified mortgage using the modification agreement for the months it covered.
- An FHA no cash-out refinance requires at least six payments under the modification agreement.
- At least one non-QM program accepts a modification completed more than 12 months before closing with no 30-day late housing payments in the last 12 months.
- That program allows loan amounts up to $3,500,000 with a 660 minimum credit score.
- At least one home equity loan we offer needs four months of acceptable payments after you exit the modification.
No waiting period with AUS approval
FHA uses your modification terms
Non-QM after 12 clean months
Trial payments can count
Deferred balances can be paid off
Home equity after four months
How Lenders Read A Modification
Each loan type treats a past modification its own way, and that difference often decides which program fits.
Fannie Mae’s examples of significant derogatory credit events are bankruptcies, foreclosures, deeds-in-lieu of foreclosure, preforeclosure sales, short sales, and charge-offs of mortgage accounts. At least one conventional program we offer requires no waiting period after a previous modified loan when the automated underwriting system approves it. Your existing mortgage must be current on the application date, which means no more than 45 days since the last paid installment.
For FHA purchases and no cash-out refinances, the underwriter reads late payments on a modified mortgage using the modification agreement for the months it covered. A no cash-out refinance also needs at least six payments under that agreement. If you made modification payments in the 12 months before the FHA case number was assigned, the file needs a copy of the modification and proof of each payment amount and date. On a VA refinance, at least one program measures the benefit of the new loan against your modified terms.
Non-QM programs write their own rules. Some treat a modification as a housing event and start the clock on the date it was signed or executed, and at least one counts only a modification due to default. At least one program accepts a modification completed more than 12 months before closing with no 30-day late housing payments in the past 12 months. At least one ITIN program asks for 12 months of seasoning after a modification.
Why choose Saxton after a loan modification
This page is for homeowners whose mortgage was modified and who now want to buy a home or refinance.
Conventional Can Skip The Wait
At least one conventional program we offer has no waiting period after a modified loan when the automated underwriting system approves the file. Your existing mortgage still has to be current when you apply.
FHA Reads Your Agreement
FHA judges late payments on a modified loan by your modification agreement for the months it covered. For an FHA no cash-out refinance, you need at least six payments under that agreement.
Twelve Months Can Be Enough
At least one non-QM program accepts a modification completed more than 12 months before closing with no 30-day late housing payments in the last 12 months. Loan amounts go up to $3,500,000 with a 660 minimum credit score.
Trial Payments Can Count
At least one jumbo program asks for six months of on-time, consecutive payments after a modification. Your trial payment plan can count toward that time if the final modified payment matches the trial payment.
Not Every Modification Counts
At least one program lists only a modification due to default as a housing event. Where a modification does count, at least one program measures from the date it was signed and allows a new loan after 24 months.
Equity Access Can Come Sooner
At least one home equity loan we offer needs four months of acceptable payments after you exit the modification. A first mortgage with a deferred balance and a balloon payment due before the new second lien matures is not eligible for that loan.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers to the questions borrowers ask most after a loan modification.
Yes. At least one conventional program has no waiting period after a modified loan when the automated underwriting system approves the file. FHA reads your late payments using the modification agreement for the months it covered. Non-QM programs set their own seasoning, which can be 12 months or 24 months depending on the program.
After six payments. FHA requires at least six payments under the modification agreement before a no cash-out refinance. On a cash-out refinance, FHA still reads your late payments by the modification agreement for the months it covered.
It can be. Some non-QM programs list a modification as a housing event, and at least one counts only a modification due to default. Fannie Mae’s examples of significant derogatory credit events are bankruptcies, foreclosures, deeds-in-lieu, preforeclosure sales, short sales, and charge-offs of mortgage accounts. At least one program does not count a housing event caused by a FEMA declared natural disaster.
It can still work. At least one conventional program has no waiting period with an automated approval, and at least one jumbo program looks for six months of on-time payments. At least one non-QM program does not allow a modification completed within 12 months of closing, so the program choice matters.
Yes. At least one home equity loan we offer requires that you have exited the modification and made at least four months of acceptable payments before you apply. At least one other program lets a deferred balance from a modification stay open once it is more than 12 months old, while a newer one must be paid at closing.
Yes, on a conventional limited cash-out refinance. Fannie Mae allows the payoff of your first mortgage to include a deferred balance from a prior loss mitigation solution. On at least one FHA program, a partial claim can be paid with loan proceeds only on a cash-out refinance; on a rate and term refinance it must come from your own funds.
A copy of the modification and proof of your payments. For FHA, if you made modification payments in the 12 months before the case number was assigned, the file needs the modification and evidence of each payment amount and date. At least one program also asks for a signed letter explaining what led to the modification.
Saxton Mortgage does. At least one conventional program we offer has no waiting period after a modified loan when the automated underwriting system approves the file.
Find out what you qualify for
Tell us when your modification was signed and how your payments have gone since, and we will check how it fits our programs.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.