If you are a home owner and have bad credit, you may still be able to refinance your mortgage.
A bad credit refinance will usually require the usage of a subprime lender
or possibly even a hard money lender. Sometimes though a bad credit
refinance can also be done with a conventional lender on an Expanded
Approval product or a My Community or Home Possibly product as well,
depending on how bad the credit is and the rest of the factors in your loan
package. Therefore, bad credit refinances are possible, but you must make
sure you work with someone who has your best interest in mind to make sure
they actually find the best deal for you.
FHA mortgages are sometimes and option as well for bad credit refinances.
FHA does not usually utilize your credit score as a factor for determining
your qualifications for a mortgage loan. They look more at the whole
picture, your past rent/mortgage history, and other various factors to
determine whether you qualify for a bad credit refinance.
Bad credit refinance can help you improve your cash flow and payoff outstanding debts. There are many programs available to borrowers with bad credit if they have enough equity in their homes. Some lenders even offer loans to borrowers with recent bankruptcies and foreclosures.
The basic requirements to qualify for an FHA Loan rather than a subprime loan is that you need to have paid your mortgage on time for the past 12 months. If you have done this and can provide a reasonable letter of credit explanation, an FHA loan can save you a lot of money compared to subprime terms.
If you have bad credit don't be sold into a sub prime loan immediately. Many sub prime homeowners could of easily qualified for an FHA loan if their mortgage broker offered FHA financing. FHA financing will give you a much lower interest rate and a fixed rate when compared to most sub prime loan products.
Though you may be able to refinance with bad credit, it might behoove you to chat with David J Zwierecki. The assistance available may be able to help you save money, payoff your mortgage sooner and help increase your overall financial situation by getting your bad credit repaired or fixed.
Many mortgage professionals have access to non-prime lenders who work with people that have run into financial trouble. Their guidelines are often quite flexible and their initial qualifying criteria is generally based on the loan to value of your home.
Many sub prime lenders will allow medical collections to be left open and any accounts that may be in collection to be left open as well. The guidelines vary from sub prime lender to sub prime lender so be sure to contact me, David J Zwierecki at 888-418-4467 with any questions you may have.
Most of the time, lenders who do these types of loans do not look at your payment history on revolving accounts, such as credit cards. They are more concerned with your payment history on your mortgage.
Even if you have had late payments on your mortgage in the past or currently, you still may be able to refinance and get the cash-out that you need.
There are even many programs available for people who have just gotten out of bankruptcy, and also for those people who are still in a bankruptcy.
If your credit is in jeopardy and you need to refinance do not expect the low rates you hear advertised on the radio. The low rates you hear quoted in mortgage advertisements are mainly geared towards the borrower with perfect credit.
A good Mortgage Professional will be able to help identify what the problems are with your credit history and provide you some strategies on how to improve your credit.
Bad credit mortgage loans are considered "non-prime" loans. Banks usually charge a higher interest rate to justify the higher default risks associated with nonprime loans.
If your credit score is below 500, you will not qualify for almost all the major conventional mortgage types, however you may still have options. If your first mortgage loan amount is less than 60% to 65% of the current market value of your home, you may still be able to refinance your mortgage.
Bad credit refinance is easy to do in Texas. The important part is how you pay your mortgage. As long as you have a good payment history, you will be able to refinance. Your credit score is important, but that is not the only thing a lender will look at.
If you have any questions regarding our products, you can contact us by calling or e-mailing us and we'll get back to you as soon as possible. Thanks!
Information listed above is to be used for educational purposes only and is not guaranteed
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