With US Mortgage Lenders you may qualify for A Texas mortgage with great rates and low down payments for situations when you have had bad credit. Although FHA loans have credit score restrictions down to a 580 for 3.5% down payment and conventional Texas mortgage lenders are extremely liberal when it comes to credit collections you owe it to yourself to apply today for home loan approval 1 day after a Texas bankruptcy or Foreclosure with Texas-Mortgage-Lenders.com.
APPLY FOR A TEXAS MORTGAGE AFTER TEXAS BK OR FORECLOSURE!!!
How does a bankruptcy affect a Texas Mortgage applicant’s ability to qualify for a mortgage?
A Chapter 7 bankruptcy (liquidation) does not disqualify a Borrower from obtaining an FHA-insured Mortgage if, at the time of case number assignment, at least (2) two years have elapsed since the date of the bankruptcy discharge.
- After 12 months timely payment history the borrower must can show that the bankruptcy was caused by extenuating circumstances beyond the Borrower’s control; and
- has since exhibited a documented ability to manage their financial affairs in a responsible manner.
- During this time, the Borrower must have:
- Re-established good credit; or
- Chosen not to incur negative credit obligations
A Chapter 13 bankruptcy does not disqualify a Borrower from obtaining an FHA-insured Mortgage, if at the time of case number assignment at least 12 months of the pay-out period under the bankruptcy has elapsed.
The Mortgagee must determine that during this time, the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and the Borrower has received written permission from bankruptcy court to enter into the mortgage transaction.
Chapter 13 Bankruptcy Mortgage Lenders
A Chapter 13 bankruptcy is a debt re-structure program. Under Chapter 13 of the United States Bankruptcy Code, codified under Title 11 of the United States Code, it allows individuals to forego a financial reorganization supervised by a federal bankruptcy court. A Chapter 13 Bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over 3-5 years.
In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:
- A list of all creditors and the amounts and nature of their claims;
- The source, amount, and frequency of the debtor’s income;
- A list of all of the debtor’s property; and
- A detailed list of the debtor’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
If the debtor does not pay or comply with the provisions of the Chapter 13 bankruptcy, the court can “Dismiss” the bankruptcy filing. This means the debts are not discharged, and the automatic stay that protects the obligations are automatically lifted. The creditors can have the right to collect past debts again.
FHA mortgage lenders will allow a borrower who has an open Chapter 13 bankruptcy get an FHA-insured loan if the terms of repayment are being made satisfactorily for the last 12 months. The bankruptcy court has to allow and give permission to obtain a new loan. Texas mortgage applicants must provide a letter of explanation regarding said bankruptcy filing, demonstrate financial stability and sound job history over and above the re-establishment of good credit standing.
Bankruptcy is a scary word to many people. Common types of bankruptcy include Chapter 7, Chapter 13, and Chapter 11. When it comes to getting a Texas mortgage after a Foreclosure or bankruptcy it’s not as bad as some may think. Texas-Mortgage-Lenders.com would like to take away the stigma that a bankruptcy may have caused you and your family by educating you on some of your loan possibilities prior to, during and after bankruptcy or Texas foreclosure. Please read the bullet points below as they pertain to home Texas mortgage loans with Texas-Mortgage-Lenders.com and use the links on this page for more detailed information about bankruptcy.
- 96.5% financing is possible as little as two years after a Texas Chapter 7 Bankruptcy discharge or dismissal with a credit score above 530.
- VA loans are possible as little as two years after a Chapter 7 discharge or dismissal with credit scores above 530.
- FHA loans are possible as little as two years after a Texas Chapter 7 Bankruptcy or dismissal with credit scores above 530.
- FHA refinances are possible as little as two years after a Texas Chapter 7 Bankruptcy discharge or dismissal.
- VA loans are possible if you have been in a Texas Chapter 13 Bankruptcy and paying it on time for at least 12 months with credit scores above 530.
- FHA loans are possible if you have been in a Texas Chapter 13 Bankruptcy and paying it on time for at least 12 months with credit scores above 530.
- Restrictions apply to all of the above but a Texas-Mortgage-Lenders.com representative can guide you through the loan process.
BAD CREDIT Texas MORTGAGE LENDERS PROGRAMS INCLUDE:
3.5% DOWN BAD CREDIT TEXAS MORTGAGE LENDERS
Texas Mortgage Lenders Loan Programs Include:
- Texas Bad Credit Bank Statment Only Mortgage Lenders!
- Bad Credit Mortgage After Foreclosure – Short Sale – Bankruptcy- Foreclosure
- Bad Credit Texas mortgage
- Bad Credit Texas Mortgage Refinance
- Bad Credit Texas Portfolio Lenders
- Buy a Texas home 1 day aftter a Foreclosure or Bankruptcy
- Bad Credit Texas FHA Mortgage Lenders
- No Credit score Texas mortgage
- Bad Credit Texas FHA mortgage
- Hard Money Texas mortgage
- Bad Credit Texas Modular Home Loans
- Texas Chapter 13 Bankruptcy Mortgage Lenders
- Bad Credit 2nd Second Texas Mortgage
- Texas Stop Foreclosure Loans
- Bad Credit Texas VA mortgage
- Bad Credit Texas Cash For Deed
- Bad Credit Texas Mortgage Rates Sheet
- Bad Credit Texas Mortgage with Judgements
- Bad Credit Texas Mortgage with Evictions
- Bad Credit Texas Mortgage With Tax Liens
- ALL SITUATIONS ARE WELCOME!!!
TEXAS BAD CREDIT INFORMATION
The presence of significant derogatory bad credit events dramatically increases the likelihood of a future default and represents a significantly higher level of default risk. Examples of significant bad credit events include bankruptcies, foreclosures, deeds-in-lieu of foreclosure, preforeclosure sales, short sales, and charge-offs of mortgage accounts.
Note: The terms “preforeclosure sale” and “short sale” are used interchangeably in this Guide and have the same meaning (see Deed-in-Lieu of Foreclosure, Preforeclosure Sale, and Charge-Off of a Mortgage Account below).
The Texas mortgage lender must determine the cause and significance of the derogatory information, verify that sufficient time has elapsed since the date of the last derogatory information, and confirm that the borrower has re-established an acceptable bad credit history. The lender must make the final decision about the acceptability of a borrower’s bad credit history when significant derogatory bad credit information exists.
This topic describes the amount of time that must elapse (the “waiting period”) after a significant derogatory bad credit event before the borrower is eligible for a new loan salable to Fannie Mae. The waiting period commences on the completion, discharge, or dismissal date (as applicable) of the derogatory credit event and ends on the disbursement date of the new loan for manually underwritten loans. See B3-5.3-09, DU Credit Report Analysis, for additional information pertaining to DU loan casefiles, including how the waiting period is determined. Also see B3-5.3-08, Extenuating Circumstances for Derogatory Credit, for additional information.
IDENTIFICATION OF SIGNIFICANT BAD CREDIT EVENTS IN THE CREDIT REPORT
Lenders must review the credit report and Section VIII, Declarations, of the loan application to identify instances of significant derogatory credit events. Lenders must review the public records section of the credit report and all tradelines, including mortgage accounts (first liens, second liens, home improvement loans, HELOCs, and manufactured home loans), to identify previous foreclosures, deeds-in-lieu, preforeclosure sales, charge-offs of mortgage accounts, and bankruptcies. Lenders must carefully review the current status of each tradeline, manner of payment codes, and remarks to identify these types of significant derogatory credit events. Remarks Codes are descriptive text or codes that appear on a tradeline, such as “Foreclosure,” “Forfeit deed-in-lieu of foreclosure,” and “Settled for less than full balance.”
Significant derogatory credit events may not be accurately reported or consistently reported in the same manner by all creditors or credit reporting agencies. If not clearly identified in the credit report, the lender must obtain copies of appropriate documentation. The documentation must establish the completion date of a previous foreclosure, deed-in-lieu or preforeclosure sale, or date of the charge-off of a mortgage account; confirm the bankruptcy discharge or dismissal date; and identify debts that were not satisfied by the bankruptcy. Debts that were not satisfied by a bankruptcy must be paid off or have an acceptable, established repayment schedule.
Note: Timeshare accounts are considered installment loans and are not subject to the waiting periods described below.
BANKRUPTCY (CHAPTER 7 OR CHAPTER 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action.
BANKRUPTCY (CHAPTER 13)
A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:
two years from the discharge date, or
four years from the dismissal date.
The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge. A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period.
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted after a Chapter 13 dismissal, if extenuating circumstances can be documented. There are no exceptions permitted to the two-year waiting period after a Chapter 13 discharge.
MULTIPLE BANKRUPTCY FILINGS
For a borrower with more than one bankruptcy filing within the past seven years, a five-year waiting period is required, measured from the most recent dismissal or discharge date.
Note: The presence of multiple bankruptcies in the borrower’s credit history is evidence of significant derogatory credit and increases the likelihood of future default. Two or more borrowers with individual bankruptcies are not cumulative, and do not constitute multiple bankruptcies. For example, if the borrower has one bankruptcy and the co-borrower has one bankruptcy this is not considered a multiple bankruptcy.
Exceptions for Extenuating Circumstances
A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the most recent bankruptcy discharge or dismissal date. The most recent bankruptcy filing must have been the result of extenuating circumstances.
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.
Exceptions for Extenuating Circumstances
A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the completion date of the foreclosure action. Additional requirements apply between three and seven years, which include:
Maximum LTV, CLTV, or HCLTV ratios of the lesser of 90% or the maximum LTV, CLTV, or HCLTV ratios for the transaction per the Eligibility Matrix.
The purchase of a principal residence is permitted.
Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
Note: The purchase of second homes or investment properties and cash-out refinances (any occupancy type) are not permitted until a seven-year waiting period has elapsed.
FORECLOSURE AND BANKRUPTCY ON THE SAME MORTGAGE
If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the lender obtains the appropriate documentation to verify that the mortgage obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting periods must be applied.
DEED-IN-LIEU OF FORECLOSURE, PREFORECLOSURE SALE, AND CHARGE-OFF OF A MORTGAGE ACCOUNT
These transaction types are completed as alternatives to foreclosure.
A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer. These are typically identified on the credit report through Remarks Codes such as “Forfeit deed-in-lieu of foreclosure.”
A preforeclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. These are typically identified on the credit report through Remarks Codes such as “Settled for less than full balance.”
A charge-off of a mortgage account occurs when a creditor has determined that there is little (or no) likelihood that the mortgage debt will be collected. A charge-off is typically reported after an account reaches a certain delinquency status, and is identified on the credit report with a manner of payment (MOP) code of “9.”
A four-year waiting period is required from the completion date of the deed-in-lieu of foreclosure, preforeclosure sale, or charge-off as reported on the credit report or other documents provided by the borrower.
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented.
Note: Deeds-in-lieu and preforeclosure sales may not be accurately or consistently reported in the same manner by all creditors or credit reporting agencies. See Identification of Significant Derogatory Credit Events in the Credit Report above for additional information.
Summary — All BAD CREDIT Waiting Period Requirements
The following table summarizes the waiting period requirements for all significant derogatory credit events.
Derogatory Event Waiting Period Requirements Waiting Period with Extenuating Circumstances Bankruptcy — Chapter 7 or 11 4 years 2 years Bankruptcy — Chapter 13
- 2 years from discharge date
- 4 years from dismissal date
- 2 years from discharge date
- 2 years from dismissal date
Multiple Bankruptcy Filings 5 years if more than one filing within the past 7 years 3 years from the most recent discharge or dismissal date Foreclosure1 7 years 3 yearsAdditional requirements after 3 years up to 7 years:
- 90% maximum LTV ratios2
- Purchase, principal residence
- Limited cash-out refinance, all occupancy types
Deed-in-Lieu of Foreclosure, Preforeclosure Sale, or Charge-Off of Mortgage Account 4 years 2 years
Re-establishing BAD Credit after bankruptcy OR FORECLOSURE
After a bankruptcy, foreclosure, deed-in-lieu of foreclosure, preforeclosure sale, or charge-off of a mortgage account, the borrower’s credit will be considered re-established if all of the following are met:
- The waiting period and the related additional requirements are met.
- The loan receives a recommendation from DU that is acceptable for delivery to Fannie Mae or, if manually underwritten, meets the minimum credit score requirements based on the parameters of the loan and the established eligibility requirements.
- The borrower has traditional badcredit as outlined in Section B3–5.3, Traditional Credit History. Nontraditional credit or “thin files” are not acceptable.
BAD CREDIT MORTGAGE LENDERS IN EVERY city Texas AND COUNTY IN TEXAS INCLUDING:
Texas 25,145,561 Houston city Texas 2,099,451 San Antonio city Texas 1,327,407 Dallas city Texas 1,197,816 Austin city Texas 790,390 Fort Worth city Texas 741,206 El Paso city Texas 649,121 Arlington city Texas 365,438 Corpus Christi city Texas 305,215 Plano city Texas 259,841 Laredo city Texas 236,091 Lubbock city Texas 229,573 Garland city Texas 226,876 Irving city Texas 216,290 Amarillo city Texas 190,695 Grand Prairie city Texas 175,396 Brownsville city Texas 175,023 Pasadena city Texas 149,043 Mesquite city Texas 139,824 McKinney city Texas 131,117 McAllen city Texas 129,877 Killeen city Texas 127,921 Waco city Texas 124,805 Carrollton city Texas 119,097 Beaumont city Texas 118,296 Abilene city Texas 117,063 Frisco city Texas 116,989 Denton city Texas 113,383 Midland city Texas 111,147 Wichita Falls city Texas 104,553 Odessa city Texas 99,940 Round Rock city Texas 99,887 Richardson city Texas 99,223 Tyler city Texas 96,900 Lewisville city Texas 95,290 College Station city Texas 93,857 San Angelo city Texas 93,200 Pearland city Texas 91,252 Allen city Texas 84,246 League city Texas city Texas 83,560 Longview city Texas 80,455 Sugar Land city Texas 78,817 Edinburg city Texas 77,100 Mission city Texas 77,058 Bryan city Texas 76,201 Baytown city Texas 71,802 Pharr city Texas 70,400 Missouri city Texas city Texas 67,358 Temple city Texas 66,102 Harlingen city Texas 64,849 Flower Mound town 64,669 North Richland Hills city Texas 63,343 Victoria city Texas 62,592 New Braunfels city Texas 57,740 Mansfield city Texas 56,368 Conroe city Texas 56,207 Rowlett city Texas 56,199 Port Arthur city Texas 53,818 Euless city Texas 51,277 DeSoto city Texas 49,047 Cedar Park city Texas 48,937 Galveston city Texas 47,743 Georgetown city Texas 47,400 Bedford city Texas 46,979 Pflugerville city Texas 46,936 Grapevine city Texas 46,334 Texas city Texas city Texas 45,099 Cedar Hill city Texas 45,028 San Marcos city Texas 44,894 Haltom city Texas city Texas 42,409 Wylie city Texas 41,427 Keller city Texas 39,627 Coppell city Texas 38,659 Huntsville city Texas 38,548 Duncanville city Texas 38,524 Sherman city Texas 38,521 Rockwall city Texas 37,490 Hurst city Texas 37,337 Burleson city Texas 36,690 Texarkana city Texas 36,411 Lancaster city Texas 36,361 The Colony city Texas 36,328 Friendswood city Texas 35,805 Weslaco city Texas 35,670 Del Rio city Texas 35,591 Lufkin city Texas 35,067 San Juan city Texas 33,856 La Porte city Texas 33,800 Nacogdoches city Texas 32,996 Copperas Cove city Texas 32,032 Socorro city Texas 32,013 Deer Park city Texas 32,010 Schertz city Texas 31,465 Rosenberg city Texas 30,618 Waxahachie city Texas 29,621 Cleburne city Texas 29,337 Farmers Branch city Texas 28,616 Kyle city Texas 28,016 Big Spring city Texas 27,282 Lake Jackson city Texas 26,849 Harker Heights city Texas 26,700 Southlake city Texas 26,575 Leander city Texas 26,521 Eagle Pass city Texas 26,248 Kingsville city Texas 26,213 Little Elm city Texas 25,898 Greenville city Texas 25,557 Weatherford city Texas 25,250 Seguin city Texas 25,175 Paris city Texas 25,171 San Benito city Texas 24,250 Alvin city Texas 24,236 Corsicana city Texas 23,770 Balch Springs city Texas 23,728 Marshall city Texas 23,523 Watauga city Texas 23,497 University Park city Texas 23,068 Colleyville city Texas 22,807 Denison city Texas 22,682 Kerrville city Texas 22,347 Plainview city Texas 22,194 Benbrook city Texas 21,234 Sachse city Texas 20,329