Can you get a home loan after you did a loan modification or mortgage modification.

You can get a mortgage after you have done a loan modification. Loan modifications were quite popular starting in 2009 through 2013. You are not seeing nearly as many since the beginning of 2014. Depending on what you did to your loan when you modified it depends on how long you have to wait if at all, after the loan was modified.


A loan modification is when you change your current mortgage without refinancing it. A loan modification is usually done by the current company who is servicing the loan.  A loan (mortgage) is considered  modified if any of the following have occurred: lowering of the interest rate, increasing the term of the loan, converting to a fixed rate or reducing the balance of the mortgage. All of these modifications will result in a lower payment.

If you went ahead a only lowered the interest rate or converted it to a fixed rate, than you should be able to qualify for a new mortgage right away, no waiting period. If you reduced the balance of the loan than you will have to wait at least 1 yr possibly more. Increasing the term of your loan will also result in at least 1 yr possibly more. The good news is most loan modifications that were done only adjusted the rate.

Loan modifications were done to try to help people stay in their current homes. The person could have had a loss of income or a job loss. Maybe they could not afford the mortgage payment after it had adjusted, sometimes as much as 7% higher. Then there were customers who were just mad that their value had dropped.

If you are going to apply for an FHA or VA loan then most lenders are going to require a minimum of 3 yrs. after your loan modification was completed. There are a couple of lenders that will allow anywhere from 1-2 yrs after a loan modification is completed. Barclay Butler Financial has no minimum time that has to have gone by since the loan modification was completed. If you just finished a loan modification Barclay Butler Financial can do your loan.

If you are applying for a Conv. loan most lenders require anywhere from 1-3 yrs. after a loan modification. Barclay Butler Financial has no minimum time frame after a loan modification is complete. With a conventional loan which is either Fannie Mae or Freddie Mac you must have at least a 620 credit score.

The loan modification must be complete. It cannot be in a trial phase and there must be a new note.

If you have lates on your new modified mortgage, almost all lenders will require a 12 month waiting period from the date of the last late. Alot of lenders also look for perfect credit after a loan modification. Barclay Butler Financial does not care if you have been late after the loan modification.

If you had a loan modification you can buy a new home or refinance your existing home. If you are not sure if you qualify please contact Barclay Butler Financial Inc.