refinance with low credit rating

Yes you would be able to refi with your scores in the 500 range most likely with sub prime. What is or has caused your score to be where it is? Is your score the higher, mid or lower 500??

Hi Bruce,

I think it is possible to refinance even with a low credit score. Many traditional and online lenders do offer loan programs for consumers with poor credit histories.

However, you may not get an attractive refinance rate with a low credit score. Each lender sets its own range of what constitutes a credit score. If you have a credit score in the 650 to 675 range, you're eligible for good rates although there are lenders who may go as low as 476, but it's going to cost you.

As a friend I shall suggest you to improve your credit score to get the best deal in the market. Credit score can definitely be improved by making a planned budget of your expenses and by making regular payments against your bills. This will help you in refinancing at a much lower rate.

Hope you will benefit from this information.

Regards,
Blue

My score is in the lower range?

Not neccessarily true that your rates will be high if you have low scores to refi. If your scores are low the LTV will be low as well. Depends on your scores your LTV (loan to value) could be as low as 65% depending on what sub prime lender you ask. There are programs that will allow 90% ltv with a minimum score of 525.

Have you been late on your current mortgage payments (this may be a factor in refinancing and determining the LTV)?

Any collection issues for accounts you may have??

Hi Bruce

Whether you require a high credit score to get a mortgage loan depends on the type of loan and the period of repayment. Moreover, the credit scores required to qualify for different types of loans vary on how the lenders rate a borrower on the basis of a particular score. For example, a borrower having a low credit score and applying for a 20 year fixed rate mortgage with a 25% down payment can qualify for a better rate than someone looking for a 1 year adjustable rate mortgage. So it is possible that for a particular score you may be offered a certain rate with one lender and a different rate with another lender.

Therefore, I would suggest that you shop out for the best possible rates so that you can get offers that are not within the subprime category.

Regards,
Caron.

Thanks every body,
The suggestions I am getting from you guys are really helpful. I am greateful to you all.
Yes Cliff I failed on my payment recently by 30 days. Any further suggestion you have?

If you go about refinancing asap before you get further behind you may still have a good chance of a better rate with just one or two lates on your mortgage. A good sub prime loan officer/broker (in which I am one) would be able to get you refinanced. Just shop around and you will be able to get back on track with your mortgage.

Thanks Cliff,

That was indeed a valuable suggestion.

Regards

No problem, that is what we are here for...to help you out with your mortgage questions.

I am not trying to write this letter for people to feel bad for me and my family. My mother is blind and my father can't walk. We have ten people living in our house. I just lost my job with I had my daughter, and my sister is having hard times. Well, last year our house went into forclosure we tried everything. But nothing is working. A month ago I talked to the mortgage company and they told me the only way to safe our home is to refinance. The problem was my mother and father would not get accepted by anything because of them being on SSD. So we put the house in my boyfriend name and with us just starting with our credit his score is a low he only has a score a little over 400. We our trying to safe the house but I can't found any place that will help us refinance the house with his score do you think that you can help us.

With a score of 400, it would not be possible for your boyfriend to get a loan. The minimum credit score required to get FHA loan is 620. For a conventional loan, he'll need a credit score of 720. I would suggest your boyfriend to improve his score and then refinance the property. To know more about improving the credit score, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html

It is possible to refinance even with a low credit score. There are companies which specialize with people who have bad credit; however, you should not expect to be given an attractive refinance rate. The best thing to do before applying for a refinance is to improve your credit so that you could get the best deal in the market. Pay your bills on time and lower your credit utilization ratio to increase your credit score.

there are companies which specialize in helping people with bad credit therefore, i think that it is totally possible to refinance even with a credit rating in the 500 range. however, you need to expect that you might be charged a high refinance rate. try to discuss your situation with as many lenders as you can as each lender has its own range of what compromises a good or bad credit score, then opt for the one which offers you the best option that you can afford. if you wish to learn more about refinancing, then you must definitely visit this website, http://www.badcredithistories.com/mortgage-refinance/.