If a past bankruptcy or lost home is the reason a Connecticut bank said no, you may still have options. Programs set their own waiting periods after a bankruptcy, foreclosure, short sale or deed in lieu, and some non-QM programs allow shorter ones than agency loans. Pick a city below to read how Connecticut borrowers can weigh timing against cost, which discharge and settlement records lenders commonly ask for, and how to tell your story clearly to a licensed loan officer.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
Connecticut foreclosure process: Judicial: foreclosure in Connecticut goes through the Superior Court, either as a strict foreclosure (no auction; title passes after the court-set Law Day) or a foreclosure by sale (court-ordered auction). Lenders look at when a foreclosure or bankruptcy was completed, so keep the final court or trustee documents.
Where the numbers point in Connecticut
Counties with the most applications denied for credit history (2024):
| County | Applications denied for credit history (2024) |
|---|---|
| the Capitol Planning Region | 1,533 |
| the South Central Connecticut Planning Region | 886 |
| the Naugatuck Valley Planning Region | 797 |
| the Western Connecticut Planning Region | 719 |
| the Greater Bridgeport Planning Region | 553 |
| the Southeastern Connecticut Planning Region | 476 |
| the Lower Connecticut River Valley Planning Region | 265 |
| the Northwest Hills Planning Region | 195 |
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Prefer to talk first? Call (888) 508-8976. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.
Mortgages After Bankruptcy or Foreclosure by city in Connecticut
- Ansonia
- Branford Center
- Bridgeport
- Bristol
- Cheshire Village
- Conning Towers Nautilus Park
- Cos Cob
- Danbury
- Derby
- Glastonbury Center
- Hartford
- Jewett City
- Kensington
- Meriden
- Middletown
- Milford
- Milford city
- Naugatuck
- New Britain
- New Haven
- New London
- Norwalk
- Norwich
- Oakville
- Old Greenwich
- Pawcatuck
- Riverside
- Rockville
- Shelton
- Sherwood Manor
- Simsbury Center
- Southwood Acres
- Stafford Springs
- Stamford
- Storrs
- Terryville
- Thompsonville
- Torrington
- Wallingford Center
- Waterbury
- West Haven
- Willimantic
- Winsted
Common questions
Can I buy a home while I am still in a Chapter 13 plan?
Some programs will consider it if your plan payments are on time and the trustee or court signs off on the added debt. Others wait until the plan ends in a discharge. Ask each lender how it treats the stage your plan is in and what written permission it needs. For legal questions about the case itself, talk to a bankruptcy attorney.
Can I refinance out of a non-QM loan once more time passes?
You may be eligible to refinance into an agency loan after its waiting period passes, if your credit, income and equity support it. That plan is not a sure thing, since rates and home values move. Before you sign a non-QM loan, check whether it carries prepayment terms, because those can add cost if you refinance early. Ask the loan officer to explain them in writing.
What should my letter of explanation say?
Cover what happened, why it happened and what has changed since, in a few short paragraphs. Name the cause plainly, such as a layoff, an illness or a divorce, and say how your finances have steadied. Skip long apologies. Sign and date it, and attach records that support it, such as discharge papers or a settlement statement, so the underwriter can match your story to the documents.
Other non-QM options in Connecticut
Bank statement loansNon-QM lendersSelf-employed1099 loansP&L loansAsset depletionNo-doc / stated incomeNew self-employedITIN loansForeign nationalNon-warrantable condoBank statement HELOCInterest-onlyBad creditSelf-employed refinanceNon-QM jumbo
Related guides
- What Is a Non-QM Loan?
- How to Compare Non-QM Loan Offers: Loan Estimates, Features and Fit
- Private Mortgage Lenders vs. Non-QM Lenders: What Is the Difference?
Mortgages After Bankruptcy or Foreclosure overview · Connecticut non-QM overview
- 2024 HMDA denial reasons