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FHA Refinance Options for Poor Credit   

What can you do if you have a bad credit score?  Maybe you have lost a job or run into financial difficulty and have gotten behind on some of your bills and payments.  This can make your credit score low.  While it can be challenging to get a bad credit mortgage or mortgage refinance, it is possible.  There are still some options available to you for mortgage loans.   

Some lenders don't look at the score as much as they look at the actual credit history.  Lenders will look to see if you have a history of payments that were 30, 60, 90 or even more, days late.  Chronic late payments make a person a bad risk in the eyes of a lender.  The lender figures if you have been late or missed payments in the past and to other creditors, you may do the same with your mortgage loan if they were to give you one.  FHA actually offers some refinance options for bad credit. 

FHA loans are a lower risk to the mortgage company because they are basically insured by the government.  This makes more lenders willing to work with people who may not have the best credit.  The FHA loan options are generally more flexible when it comes to credit scores and credit history.  The government agrees to repay the lender if the borrower defaults on the loans.  This is why these loans require a lower down payment than conventional loans.  This is also why they are very often used for situations involving bad credit mortgage loans and mortgage refinancing. 

The FHA mortgage refinance options will start with a visit with a loan officer to see what you qualify for.  Proof of employment, information on your assets, and a current appraisal of your home are all important elements as you are considered for approval of a mortgage refinance.  The information that you will need to provide the loan officer with things such things as your current income level as well as your income and employment history.   

FHA programs have helped many people with poor credit get mortgage refinancing.  This can lower their payments and make it possible for them to make their payments on time and each month when they would have been otherwise able to do so under their previous mortgage terms.  Making these payments on time and each month will improve their credit history and their credit scores.  If you already have an FHA loan, you may be able to do a streamlined refinance of that loan.  The company already has all your information from your current loan so the paperwork and time involved to refinance is cut down greatly.    Even if you do not currently have an FHA loan, you can provide all of the necessary information and documentation and FHA can decide whether or not you qualify. 

Many people with poor credit automatically assume there is no way they can get a new mortgage or refinance.   However, FHA programs have helped many people in this situation to get a bad credit mortgage or refinance.  Be sure to check out your options, and if you don't qualify now, you can work to qualify in the future.