Affiliated Mortgage LLC: Home Refinance Options For Those With Poor Credit

Home Refinance Options For Those With Poor Credit

Home refinancing is possible despite a poor credit score. Refinancing programs like the Federal Housing Authority and Home Affordable Refinance programs don’t even ask for credit checks or scores. The VA even provides lenders with the ability to work with borrowers that have had their credit deteriorate over time.

While it might not seem viable at the time, you’d be surprised to learn that 14.5% of homeowners that refinanced in December 2017 had FICO scores below 650. 5% of refinancers had scores lower than 600. This just goes to show that no matter how poor your credit score is, refinancing is always an option.

As far as refinancing with bad credit goes, here are your options.

Try To Qualify For HARP

HARP stands for the Home Affordable Refinance Program. It’s HUD’s refinancing program for homeowners that are down in the dumps financially. The most difficult obstacle keeping homeowners qualifying for a HARP is that they must not have made any late mortgage payments within the last six months of the application.

Talk It Out With Your Lender

As you know by now, lenders range in terms of their willingness to work with borrowers. Reach out to your lender and inquire as to whether a mortgage refinance is possible. Lenders like Affiliated Mortgage that have a vested interest in serving their community are more wiling to work with borrowers than big banks.

VA Refinancing

When it comes to mortgages the VA has some of the best deals around. The Department of Veterans Affairs doesn’t require a minimum credit score or even credit check for their refinance loan. Should you qualify for the loan, look no further. The Interest Rate Reduction Refinance Loan offered by the VA has no equal in terms of mortgage refinances.

Kick Your Partner Off The Loan

Maybe you have decent credit but the other person or people on your loan don’t. Generally speaking the more people on the application of a mortgage refinance, the more likely you are to secure a solid mortgage refinance.

Portfolio Refinance Loan

A portfolio loan is a private mortgage. Since lenders underwrite such loans they create their own requirements. The credit, income, employment, and other requirements can range when it comes to such a loan. The best person to chat with about a portfolio refinance loan is a mortgage broker with access to various private lenders.

Maybe you’re able to refinance your home, but the terms that you’re offered aren’t acceptable. Should this happen the only logical way forward is to improve your credit score before once again seeking to refinance your home. When your refinance application is rejected, ask the lender what areas of your application need to be improved. Use their feedback to improve the likelihood of having your application accepted in the future.

If you have any questions concerning your loan feel free to get in touch with the refinance mortgage brokers at Affiliated Mortgage. This home lender has been helping families across the nation find reasonable mortgages for more than 30 years.