Program highlights
- Recent housing event
- Second chance and fresh start program
- FHA manual underwrites down to 580
- VA manual underwrite 580 minimum score
- USDA manual UW allowed
- Conventional no-FICO options
- No minimum score when LTV is below 80% (conventional)
Can I get a mortgage after foreclosure or bankruptcy?
Often, yes. Standard agency loans have waiting periods after a foreclosure, short sale, or bankruptcy, but Non-QM programs designed for recent housing events and credit setbacks can shorten that wait. And once you are past the waiting period, manual underwriting gives a real person room to look at your full story.
Recent housing event and fresh start programs
Our Non-QM options include a recent housing event program and a second chance and fresh start program. These are for borrowers who have had a foreclosure, short sale, deed in lieu, bankruptcy, or serious late payments more recently than agency guidelines allow. Qualifying focuses on your current income, reserves, down payment, and how you have managed credit since the event. These programs typically require more down and carry higher pricing than agency loans, and many borrowers plan to refinance later once their credit recovers.
Manual underwrites down to 580
Most loans are first run through an automated underwriting system. If it does not approve the file, that is not always the end. On FHA and VA loans, we can manually underwrite files with scores down to 580, and USDA manual underwriting is also allowed. A manual underwrite looks at:
- Rent history, especially 12 months of on-time payments
- Cash reserves after closing
- Stable employment
- Debt-to-income ratios within manual underwriting limits
- A clear explanation of what caused past credit problems and what has changed
No-FICO and low-score conventional options
Some borrowers have no score at all, often because they have avoided credit. Our conventional no-FICO options use alternative credit history instead. And with more than 20% down, meaning a loan to value below 80%, our conventional program has no minimum credit score.
Waiting periods on agency loans
Agency programs set waiting periods after major credit events, and those periods vary by loan type and by the circumstances, such as whether the event was caused by something outside your control. We review your exact dates and documents to find out when each program opens up for you, and whether a Non-QM loan now or an agency loan later is the smarter plan.
What you need to apply
- Bankruptcy discharge papers, foreclosure or short sale documents, if applicable
- A written explanation of the event and what has changed
- 12 months of rent payment history
- Pay stubs, W-2s or tax returns, and bank statements
- A valid ID
How we help in Austin
We have helped Central Texas families buy again after job losses, medical bills, divorce, and business setbacks. There is no judgment in the conversation. We look at your dates, your credit, and your goals, then give you a specific plan: buy now with a second chance program, or take clear steps to qualify for an agency loan by a target date. We offer these programs in all 12 of our licensed states.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
Second Chance Loans: common questions
How soon after foreclosure can I buy a home?
It depends on the loan type. Agency loans like conventional, FHA, and VA have waiting periods after a foreclosure that vary by program and circumstances. Our recent housing event and second chance programs are Non-QM options that can allow you to buy sooner, typically with a larger down payment. We review your dates and show you each option's timeline.
Can I get a mortgage after bankruptcy?
Often, yes. Agency loans have waiting periods that start from the discharge or dismissal date, and they vary by bankruptcy type and loan program. Our second chance and fresh start program may allow you to buy sooner. Rebuilding credit with on-time payments since the bankruptcy helps a great deal. Bring us your discharge papers and we will map out your options.
What is a manual underwrite?
A manual underwrite is when an underwriter reviews your loan by hand instead of relying only on an automated system's decision. We can manually underwrite FHA and VA loans down to a 580 score, and USDA manual underwriting is allowed. The underwriter looks at rent history, reserves, job stability, and the reasons behind past credit issues.
Can I get a mortgage with no credit score?
Yes, in many cases. Our conventional no-FICO options use alternative credit history, such as rent, utility, phone, and insurance payments, in place of a traditional score. With more than 20% down, our conventional program has no minimum credit score. Keep records of at least twelve months of on-time payments, since those typically form the basis of the review.
Will I be stuck with a second chance loan forever?
No. Many borrowers use a second chance or recent housing event loan to buy now, then refinance into a conventional, FHA, or VA loan once the agency waiting period has passed and their credit has recovered. We discuss that plan at the start, so you know the likely timeline and what to focus on to get there.