General / Other
mortgage late payment
Mortgage late payment eligibility varies significantly by program tier and severity: any 60-day+ mortgage late within 12 months renders a conventional loan ineligible via DU, while non-QM programs offer tiered accommodations ranging from LTV reductions to extended seasoning windows.
Guideline Requirements
Fannie Mae — Conventional (DU)
- Ineligible delivery: "Excessive prior mortgage delinquency is defined as any mortgage tradeline that has one or more 60-, 90-, 120-, or 150-day delinquency reported within the 12 months prior to the credit report date."
- "Loan casefiles will receive an Ineligible recommendation due to excessive prior mortgage delinquency if the borrower has a mortgage tradeline on their credit report that has one or more 60-, 90-, 120-, or 150-day delinquency reported within the 12 months prior to the credit report date. The above policies will apply to all mortgage tradelines, including first liens, second liens, home improvement loans, HELOCs, and manufactured home loans."
- 30-day lates: "DU considers the severity of the delinquencies (30, 60, 90, or more days late), the length of time since the delinquencies, and the number and type of accounts that were not paid as agreed... For example, a 30-day late payment that is less than three months old indicates a higher risk than a 30-day late payment that occurred several years ago."
- Delivery requirement: "The borrower has not had a 30-day delinquency in the 12-month period that precedes the lender's delivery of the loan to Fannie Mae."
FHA — AUS (TOTAL Scorecard)
- Purchase / Rate-Term — Manual downgrade triggers: "The Mortgage must be downgraded to a Refer and manually underwritten if any mortgage trade line, including mortgage line-of-credit payments, during the 12 months prior to case number assignment reflects: three or more late payments of greater than 30 Days; one or more late payments of 60 Days plus one or more 30-Day late payments; one payment greater than 90 Days late; or that the Borrower has made less than three consecutive monthly housing payments since completion of a mortgage Forbearance Plan."
- Cash-Out Refi — Stricter threshold: "The Mortgage must be downgraded to a Refer and manually underwritten if any mortgage trade line, including mortgage line-of-credit payments, reflects: a current delinquency; any delinquency within 12 months of the case number assignment date; or the Borrower has made less than 12 consecutive monthly mortgage payments since completion of a mortgage Forbearance Plan."
- Manual underwriting standard: "There can be no mortgage lates in the last 12 months, and no more than two 30-day lates in the last 2 years."
- Modification impact: "A Mortgage that has been modified must utilize the payment history in accordance with the modification agreement for the time period of modification in determining late housing payments. In addition, where a Mortgage has been modified, the Borrower must have made at least six payments under the modification agreement to be eligible for a no-cash out refinance."
VA
- Manual downgrade threshold: "Perform manual downgrade to Refer for any mortgage debt with more than 1 by 30 day late payment in the past 12 months."
Lender Overlays / Matrix
Mega Capital — FHA Overlay
- All FHA transactions: "All FHA Transactions must be current with no late payments in most recent 12 months through close of escrow."
- FHA Cash-Out: "No late Mortgage payments in last 12 months prior to FHA case# issue date."
- FHA Rate/Term (FHA-PLUS): "Depending on the amount of mortgage lates and when they occurred, the loan may need to be downgraded to manual underwrite and there can be no late payments in the last 12 months or more than two 30 day late payments in the last 24 months."
- FHA Streamline: "No late Mortgage payments in last 12 months prior to FHA case# issue date."
Mega Capital — XHELOC (Conventional HELOC)
- 0x30x6: no late payments in the past 6 months; 1x30x24: no more than one 30-day late in the last 24 months.
Mega Capital — Expanded DSCR
- "The housing payment history must reflect 0x30x12 for the subject property and each borrower's/guarantor's primary residence for the most recent 12 months, regardless of whether the borrower/guarantor is on the note or vested on title. Rolling late payments are not considered a single event. Each occurrence of a contractual delinquency is considered individually."
- Derogatory event seasoning — all require 36+ months minimum:
| Event | Seasoning Measured From |
|---|---|
| Foreclosure, Short Sale, Pre-Foreclosure, DIL | Property resolution (complete date) to note date |
| Chapter 7, 11, 13 BK | Discharge/dismissal date to note date |
| Modification (due to default) | Date modification was signed |
| Notice of Default or Lis Pendens | Date of notice to note date |
| 120+ Day Delinquency | Date loan brought current to note date |
| Balloon payments >180 days past maturity | Date balloon paid to note date |
Mega Capital — MVP
- "Prior Foreclosure, Short Sale, Deed-in-Lieu, and Modification (due to default), Notice of Default, Lis Pendens, and 120+ days delinquency is permitted and require a 4-year seasoning."
- "Housing History: 0x30x12, 0x60x24 — All mortgages and rental payments should be current at time of closing."
Mega Capital — Simple MVP
- "Modification... The borrower must have made 48 consecutive months of timely payments on the modified loan before the note date of the new loan."
Mega Capital — Silver Jumbo
- Significant Derogatory Credit triggers requiring written LOE: "There is more than one 30-day late housing payment in the last 12 months; there are more than two 30-day or more than one 60-day late housing payments within the most recent two years."
- "Note: Mortgage payments missed during the time of a COVID-19 related Forbearance do not have to be considered as mortgage lates."
JMAC Lending — Newport Non-Conforming
- "For a 120-day mortgage late, seasoning is from the date the mortgage was brought current."
- "Rolling late payments are not considered a single event. Each occurrence of a contractual delinquency is considered individually for loan eligibility."
- "All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current."
JMAC Lending — DSCR Prime
- "Notice of Default will be considered a 1x90x12 under housing history restrictions. If the borrower cured the default and has made 12 timely payments, they are eligible without any restrictions."
- "Forbearance, Modification, or Deferrals: No longer considered a credit event... Greater than 12 Months from Note Date: Forbearance, loan modification, or deferrals completed or reinstated greater than 12 months from the Note date of the subject transaction and having a 0x30x12 Housing History are allowed. Within 12 Months of Note Date: not eligible."
JMAC Lending — FHA Standard/High Balance (Manual UW)
- "There can be no mortgage lates in the last 12 months, and no more than two 30-day lates in the last 2 years."
AD Mortgage — Non-QM (Tiered by Product Grade)
| Program | Delinquency Requirement |
|---|---|
| Super Prime | 0x30x12 AND 0x90x24 |
| Prime | 0x60x12 (30-day lates may be acceptable) |
| DSCR | 0x30x12 AND 0x90x24 |
| Foreign National | 0x30x12 AND 0x90x24 |
Newfi Lending — Non-QM (DSCR / Bank Statement / FN)
- "Max 1X30X12 on mortgages is allowed — Max 0X30X12 when either or both of the following are present: DSCR >=0.80 < 1.00; Credit scores below 660."
- "A 36-month waiting period is required for all of the following: Foreclosure, Short Sale or Short Refi (Mtg Charge-off), Deed-in-Lieu (DIL), Bankruptcy (All), Modification."
Greenbox — By Program Tier
- NP Full/Alt Doc (most flexible): Up to 0x90x12 with LTV restrictions — "0x90x12 Housing History: Max 65% LTV Purchase/Rate and Term; Max 55% LTV Cash Out; Max $750k LAMT." Housing event seasoning as short as 12 months with LTV restrictions.
- Elite Full/Alt Doc: "1x30x12 Housing History: Max 80% LTV Purchase/Rate and Term; Max 75% LTV Refinance; Max $2.5mm LAMT."
- Elite Plus Full/Alt Doc and Elite Plus DSCR: 0x30x12 required.
- CES Full/Alt Doc (Second Mortgage): 0x30x12 for all borrowers; ineligible for borrowers with incomplete housing history.
- Super Jumbo Full/Alt Doc: 0x30x24 (clean 24 months required).
- 5-8 Unit DSCR: 0x30x12; housing event seasoning 48+ months.
New Wave Lending — DSCR Prime
- "If housing history (all financed properties) reflects forbearance agreement, the payment history must reflect 0x30 in most recent 12 months since exiting forbearance prior to Note date."
- "Derogatory Credit Event: Minimum 4 years waiting period since bankruptcy discharge or dismissal, foreclosure, notice of default (NOD), short sale or deed-in lieu or modification measured from the date of completion to the date of application."
Nations Direct — Non-QM 1099
- "Mortgage History: 1x30x12 — Not Available on Product 130."
AmWest Funding — Advantage Investor Plus
- "Mortgage Lates — 1X30 within 12 months. This applies to any mortgage reported on the credit report, the borrower's primary residence and the subject property if it is a refinance transaction."
Cross-Program Principles
- Rolling lates count individually. JMAC Lending, Mega Capital Expanded DSCR, and JMAC DSCR Prime all explicitly state that "rolling late payments are not considered a single event."
- 120-day lates are a distinct credit event with seasoning measured from the date the mortgage was brought current, not the date of the late payment.
- COVID-19 forbearance exclusion applies at Mega Capital Silver Jumbo and under FHA guidelines — missed payments during a COVID-19 forbearance are not counted as mortgage lates.
- LTV reduction is the primary accommodation for borrowers with recent 30-day lates who do not qualify under standard tiers (Greenbox, Newfi).
- Current-at-closing is universally required across all programs reviewed — any past-due status at closing requires updated documentation confirming the account is current.
