Florida Recent Credit Event Loans — Buy a Home 1 Year After Bankruptcy, Foreclosure, or Short Sale

With an RCE loan, as soon as 1 day after Chapter 7 discharge on some programs, though most commonly 1–2 years post-discharge. Chapter 13 typically requires 1 day after discharge or 12 months of on-time plan payments. For comparison: conventional loans require 4 years after Chapter 7, 2 years after Chapter 13 discharge; FHA requires 2 years after Chapter 7, 1 year after Chapter 13. RCE pricing tightens the further you are from the event — 2–4 years out gets meaningfully better rates than 1–12 months out.

Chapter 7 and Chapter 13 bankruptcy, foreclosure, deed-in-lieu of foreclosure, short sale, mortgage charge-off, and modification under HAMP or similar programs. Late mortgage payments alone (without a formal event) are typically handled by standard non-QM bank statement or asset-based programs rather than the specialized RCE product. Multiple events in the past 5 years narrow your options and increase pricing but don’t automatically disqualify you — we’ll review your specific timeline.

10–30% down depending on how recent the credit event was and your current credit score. 1–12 months post-event: typically 25–30% down required. 12–24 months out: 20–25%. 24–48 months out: 10–20%. The down payment is the lender’s primary risk buffer, so larger down generally unlocks better pricing and more flexible underwriting. Gift funds, asset depletion, and seller concessions may be allowed depending on the specific program.

Typically 1.5–3% above conventional 30-year fixed. The premium reflects two things: the recent credit risk and the loan staying in the lender’s portfolio (no Fannie/Freddie buy). Pricing improves significantly as you move further from the event — a borrower 36 months post-bankruptcy often gets rates within 1% of conventional, while someone 6 months out may pay 2.5%+ above. The math usually still works: paying 1.5–2% more on a mortgage for 2–3 years vs. renting for 2–7 years often saves money overall.

580–620 FICO floor on most programs, with the best pricing kicking in at 660+. After a bankruptcy or foreclosure, scores typically rebuild to 600–650 within 12–24 months if you stay current on remaining accounts. We’ll pull your credit (no impact, no hard pull) and tell you exactly which RCE program tier your score fits. If your score is below 580, we’ll outline what you can do over the next 3–6 months to qualify.

Yes — and we plan for this from day one. Once your credit event is 4 years past (2 years for Chapter 13), you become eligible for conventional refinance pricing. Most RCE borrowers refi to conventional 2–3 years after their original RCE purchase, saving 1.5–2.5% on rate. Your RCE loan locks in the home and the appreciation; the refi locks in better long-term financing. No prepayment penalty on owner-occupied RCE loans (some investor variants have a step-down).

Standard income docs (W-2s, tax returns, or non-QM alternatives like bank statements), 2–6 months of asset statements, evidence the credit event is officially closed (discharge papers, foreclosure deed, settlement letter), and a written letter of explanation describing what caused the event and what’s different now. Lenders look for stable employment for 12+ months post-event, on-time rent or other housing payments since the event, and no new derogatory accounts. Cleanliness for the last 12 months matters more than the event itself.