With a credit score between 475-500 is it possible to refina

br56877 · Joined: 23 Aug 2007 Posts: 1 1.53 Dollars($)

Would you recomend refinance

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

Apart from credit score please give few more details, like your income, present dti ratio, equity in the house, why the score is so low...

All these factors will decide whether you'd be able to qualify for refinance or not. But the score does suggest that you had credit problems and may find lenders offering higher rates for refinance.

Miller

Guest 0.10 Dollars($)

Refinance is possible but interest rate will be much higher. I suggest you improve upon your credit and then look for refinance. If you put in the effort then within 6 months you can improve your score by quite a lot.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Br,

Nowadays, there are many lending institutions in the market who offers loan even with a low credit score. All you need is to shop around them and find out the right lender for you.

But to qualify for a refinance, the lender will not only look at your score. They will also look some other factors like your present income, debt-to-ratio, etc.

But it is quite likely that even if you qualify for the refinance, the lender may charge a higher interest rate on the loan because of your low score. So you must be prepared to bear it.

Guest 0.10 Dollars($)

As I read the early replies, it seems that the writers are not up on the credit tightening in the mortgage industry. With ficos that low, the banks will seek one thing,How Much Equity Do You Have In The Property? If you are over 70% in Mortgage Debt, the chances are slim to get a Mortgage and you will also HAVE to go FULL DOC to prove income to support repayment. Otherwise Private Money will be available at a rate that can put you under, and we haven't discussed fees up to this point. Clean your credit and over time, your scores will go up. 1 year of NO lates on all trade lines will make a major impact to improve your score.

helping_user

Welcome Steve.

I agree with you. Amidst the credit tightening due to subprime mortgage crisis, it is almost impossible to get a refinance loan. Some of the big lenders in the industry have filed bankruptcy as a result of the high rate of default. In this scenario, lenders and banks are coming up with new rules to tighten credit; even if you are rich, it will not be that easy to get a mortgage; you've got to satisfy every criteria that goes towards approving your loan. So, it is almost impossible to refinance at 475-500 score.

Thanks.

ezmortgageloanz · Posted: Sun Aug 26, 2007 4:44 pm Post subject:

Although all the previous comments posted are true, they only apply to conventional subprime lending.

In the absense of knowing more info about you, I would suggest that you investigate the use of a FHA loan.

FHA loans would allow for up to a 95% cash out refinance, with near conventional interest rates regardless of your credit score.

Regards,

Scott Miller

Guest 0.10 Dollars($)

But Scott, what if it's a non-FHA loan? will he be able to do it by an FHA loan?

Guest 0.10 Dollars($)

Yes Ryan, a borrower can surely refinance a non-FHA loan with an FHA loan which is not offered depending solely upon the borrower's credit score.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Ryan,

It is very easy to qualify for a FHA refinance loan as it hardly requires any income verification, credit check, and even an appraisal of the property. But one important point to qualify for the refinance is that the borrower must use the home as his primary residence.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Hi Ryan,

It is very easy to qualify for a FHA refinance loan as it hardly requires any income verification, credit check, and even an appraisal of the property. But one important point to qualify for the refinance is that the borrower must use the home as his primary residence.

There still has to be equity available in the home right?

Guest 0.10 Dollars($)

Yes you should have enough equity in the house to be able to refinance the existing mortgage.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

I figured that. I wish there was a program where they don't use equity.

Guest 0.10 Dollars($)

yeah, me too wildstormfilms. by the way what's your name actually??

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

yeah, me too wildstormfilms. by the way what's your name actually??

I'm sorry but thats classified information....... just kidding.

My name is Lee

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