Think again. With less-than-perfect credit, you won’t have access to the lowest interest rates or the best loan terms. But qualifying for a refinance may be possible even if you’ve had to file for bankruptcy. Here’s a look at five ways to refinance a mortgage with bad credit if you want to lower your monthly mortgage payments.
FHA Cash-Out Refinance. The FHA Cash-Out Refinance program is available to people with credit scores as low as 580. Some lenders may want a score of 600 or higher though. This program has a maximum LTV of 85%, so you won’t be able to qualify if you still own a lot on the home. You’ll need at least 15% equity.
Make sure you understand all of the terms of the loan – many of these loans come with adjustable-rate mortgages to make them more affordable, although they are usually fixed for at least five to seven years to give you time to get your credit house for a refinance. Final thoughts about refinancing with bad credit
7 home refinance options for people with bad credit. dana dratch. march. Cash-out mortgage refinance: How it works and when it’s the right option. Bankrate is compensated in exchange for.
Direct Gov Loans Conventional Cash Out Refinance Guidelines Veterans House Loan In addition, the interest rate usually is about one-quarter of a percentage point lower than a conventional loan, said Wes Moore, president of the New Mexico Association of Mortgage Professionals and.