A hard yeardoesn't have tokeep you from owning.
Bankruptcy, foreclosure, a short sale or a low score doesn't always mean years of waiting. Select programs start at a 500 credit score, and some allow you to buy as soon as 1 day after a bankruptcy discharge or foreclosure. We show you every path, what each one costs, and whether buying now or waiting a little longer saves you more.
Secure application, about 10 minutes. A licensed loan officer reviews it and reaches out to walk you through your options.
Who second chance loans are built for.
A strong fit if
- Your credit score is between 500 and 620
- You had a bankruptcy discharged recently, or you're in a Chapter 13 plan and making the payments
- You went through a foreclosure, short sale or deed-in-lieu
- You have collections, charge-offs or late payments on your report
- A bank already told you to come back in a few years
Compare options if
- Your score is 620+ and the standard waiting period has passed. FHA or conventional will usually cost less
- You're a veteran and it has been 2 years since the event. Look at VA's 0% down first
- You have little saved and your score is under 580. Start with our free credit plan, then buy the right way
How soon you can buy, loan by loan.
Every loan type has its own clock after a credit event. Specialty programs can start that clock on day one, at a higher cost. Exact terms change often.
| Credit score | Select specialty programs start at 500. FHA allows 500 to 579 with 10% down under HUD rules, but many lenders set a higher floor, so we place your file with one whose rules fit. |
|---|---|
| Chapter 7 bankruptcy | Specialty: as soon as 1 day after discharge on select programs. FHA: 2 years after discharge. VA: 2 years. Conventional: 4 years, or 2 with documented extenuating circumstances. |
| Chapter 13 bankruptcy | FHA and VA: possible while you're still in the plan, after 12 months of on-time payments and with the trustee's approval. Conventional: 2 years after discharge, 4 years after dismissal. Specialty: as soon as 1 day after discharge on select programs. |
| Foreclosure | Specialty: as soon as 1 day after completion on select programs. FHA: 3 years. VA: 2 years. Conventional: 7 years, or 3 with extenuating circumstances and extra limits. |
| Short sale or deed-in-lieu | Specialty: as soon as 1 day after completion on select programs. FHA: 3 years. Conventional: 4 years, or 2 with extenuating circumstances. |
| Down payment | Plan on more down with a specialty loan, often 20% or more. The lower the score and the more recent the event, the more you'll need. FHA is 10% down from 500 to 579 and 3.5% at 580+. |
| Rate and cost | Specialty loans cost more because the lender takes more risk. Many buyers use one to buy now, rebuild for 12 to 24 months, then look at refinancing into FHA or conventional if their credit and rates allow. |
| Income | Standard pay stubs and W-2s, or bank statements for self-employed buyers. See all Non-QM income options. |
| Collections and disputes | We never tell you to dispute a debt that's yours. Underwriters usually require active disputes to be removed before closing, which can delay or stop a loan. We build a plan around what will actually move your score. |
What to have ready.
Don't have everything yet? Apply anyway. Your loan officer will tell you exactly what's missing.
- A photo ID
- Your bankruptcy discharge papers, or the closing statement from your foreclosure or short sale
- Your last 30 days of pay stubs and 2 years of W-2s, or 12 to 24 months of bank statements if you're self-employed
- 2 months of statements for the account your down payment comes from
- A short letter explaining what happened. We'll help you write it
What happens after you apply.
You apply in about 10 minutes
Online, from your phone or computer. Prefer to talk? Call (301) 341-2200 and we'll fill it out with you.
A loan officer calls you
We review your goals and your documents and tell you plainly what you qualify for.
We shop the lenders
We compare programs and pricing across our lender partners and walk you through the options before you commit.
Second Chance questions we hear every week.
Can I really buy a home with a 500 credit score?
Yes, in two ways. FHA allows a score from 500 to 579 with 10% down, if the lender accepts it. Select specialty programs also start at 500, usually with a larger down payment. The lower your score, the more you'll put down and the higher the rate, so we always show you what a few months of credit work could save.
How soon can I buy a home after bankruptcy?
On select specialty programs, as soon as 1 day after your discharge. FHA and VA usually require 2 years after a Chapter 7 discharge, and conventional loans 4 years. If you're in a Chapter 13 plan, FHA and VA can work after 12 months of on-time payments with your trustee's approval.
How soon can I buy after a foreclosure or short sale?
Select specialty programs can work as soon as 1 day after the foreclosure or short sale is complete. FHA usually requires 3 years, VA 2 years after a foreclosure, and conventional 7 years after a foreclosure or 4 years after a short sale.
Should I buy now or wait for FHA?
It depends on the numbers. We price both: a specialty loan now with a plan to refinance later, and an FHA or conventional loan once you're eligible. Then you can see the payment, the cash to close and the total cost side by side and decide.
Should I dispute items to raise my score?
Only if the account isn't yours or the information is wrong. Disputes on a credit report usually have to be removed before a mortgage can close, which can cost you weeks or the house. We'll tell you which items to leave alone, which to pay and which to fix.
Is a second chance loan a subprime loan?
No. These loans still have to verify that you can afford the payment, and loans over federal high-cost limits aren't allowed. They cost more because the lender takes more risk, but they are not the no-documentation loans of 2006.
Compare other options.
Non-QM Loans
Bank statement, P&L, 1099, asset-based, ITIN, foreign national, interest-only and credit from 600 or no score.
ExploreLow down paymentFHA Loans
3.5% down and flexible credit for buyers with a 580+ score.
ExploreVeterans & militaryVA Loans
No down payment and no monthly mortgage insurance for eligible veterans and service members.
ExploreRefinanceRefinance & Cash-Out
Lower your rate, drop FHA insurance, shorten your term or take cash out.
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