Mortgages After Bankruptcy or Foreclosure in Austin
- After BK, foreclosure or short sale
- Non-QM
- Purchase or refinance
- Texas
A bankruptcy, foreclosure or short sale is often the result of a job loss, a medical bill, a divorce or a business that didn’t make it. It doesn’t define you as a borrower. If your income and finances have recovered, it’s worth finding out what’s possible now instead of assuming you have to wait. This program is part of our non-QM loan options.
Agency waiting periods vs non-QM
Waiting periods vary by lender and program; some lenders will consider a recent event. Agency loans such as FHA and conventional set their own rules, and non-QM lenders write theirs. If you’re already past the agency waiting period, an agency loan may be the better fit, and we’ll compare both.
What lenders look at after a credit event
- How much time has passed since the event
- How you’ve handled credit since then
- Your current income and its stability
- Your down payment and reserves
Requirements vary by lender.
Steps to prepare
1. Gather your bankruptcy discharge or foreclosure or short sale paperwork
2. Pull your credit reports and check them for errors
3. Keep current accounts paid on time
4. Save toward a down payment and reserves
5. Read our guide to credit health before you apply
6. Talk with us early, so you know which lenders fit your timeline
Fits when
- You’ve had a recent credit event
- Your income has recovered
- You don’t want to wait out agency waiting periods
Look elsewhere when
- You’re already past agency waiting periods. FHA or conventional may fit.
Documents
- Bankruptcy discharge, or foreclosure or short sale paperwork
- Income documentation (self-employed borrowers can compare bank statement and self-employed options)
- Asset statements
- Government-issued ID
How CapFi shops it
Lenders treat credit events very differently. I compare options across more than 50 wholesale lenders, and we can sign up an additional lender if your scenario needs one. We’ll give you a straight answer on where you stand today and what would improve your options.
FAQs
Can I get a mortgage soon after bankruptcy in Texas?
Possibly. Some non-QM lenders allow shorter waiting periods after bankruptcy, foreclosure or short sale than agency loans do. Terms vary by lender and your situation, including the type of event, how long ago it happened and how your credit and income look now. A broker can compare several lenders for you.
What do lenders want to see after a foreclosure?
Lenders usually look at time since the event, credit since then, income, and down payment or reserves. They want to see that the circumstances behind the foreclosure have been resolved. Requirements vary by lender, so CapFi Lending compares options across more than 50 wholesale lenders for your scenario.
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CapFi Lending · 2617 Willow St, Unit 1, Austin, TX 78702 · NMLS 1692019 · Licensed in Texas · Equal Housing Opportunity
Program availability, eligibility and terms are set by each lender and vary by lender and scenario. This is not a commitment to lend.
Work with a local Austin broker: CapFi Lending's Austin office · Dustin Edwards, founder (NMLS 577050) · Clay Wilson, loan officer · Meet our team · About CapFi Lending