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Are the credit requirements the same for a refinance as for an original mortgage loan?

Posted on: 28th Apr, 2010 12:01 pm
i understand you can't get a mortage with a credit score under 620...can you refinance with a credit score under 620?
Hi,

You may qualify for very few mortgages with a low credit score. However, the interest rates on these mortgages will be high in comparison to others. The higher your score, the better offer you will get for mortgages.

Thanks,

Sandra
Posted on: 29th Apr, 2010 05:34 am
Hi Rox,

You may qualify for VA or FHA loans with as low a score as 620. However, such loans come with high interest rates. If you can't afford such high rates, you can wait for some time before taking a loan, and try to improve your credit score.

For improving your credit score you first need to pull a copy of your credit report. Check it carefully. If you find any wrong listings, dispute those with the credit bureaus. If there are any negative listings, like late payments, try to become current on those. Along with the payment agreement, request the creditor or colelction agency to agree to a "Pay for delete" (PFD) agreement. With a PFD all the negatives on your account will get removed from your report.

Other than this, you can also try to get a secured credit card. Getting a secured card is easy to get with low credit score. After that you can use the card to make small purchases, and then make on-time payments on these. This can help you in improving your score.

Thanks,

Lydia
Posted on: 30th Apr, 2010 04:33 am
Hi Lydia,

620 is the qualifying score for VA and FHA loans. Thus, it's not necessary that the interest rates may be high.

Thanks,

Alysa
Posted on: 01st May, 2010 01:03 am
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