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More Americans who recently went through foreclosure or bankruptcy are getting home loans.

A new wave of nonbank lenders is bringing these risky buyers back into the housing market some seven years after the mortgage meltdown. The lenders are targeting borrowers who have recently gone through a foreclosure, short sale or bankruptcy—but who they say are safer than their credit profiles suggest. They are sometimes approving borrowers in as little as a few months or even weeks after a foreclosure.

“Lenders are trying to carve out niches that play upon the fact that underwriting remains, by historic standards, very tight,” said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. “That’s always the way it starts out and then you keep loosening and loosening—we’re right at the beginning of that.”

“Drop Mortgage has given out $96 million in mortgages since July, said its president, Jon Maddux. It has no minimum FICO score requirement but prefers borrowers above 600.”