The days of bad credit mortgage refinancing with a sub 600 credit score are long gone. Also the days of being able to get bad credit mortgage refinancing with not being able to show your tax returns to prove this income is real. To qualify for this bad credit mortgage refinancing you will have to have a 620 credit score. With a 620 credit score you are able to qualify for FHA mortgage refinancing. This is the only way that anyone in the market can get bad credit mortgage refinancing. Unless you want to do hard money lending which the rates are over 10%.
If you qualify for the bad credit mortgage refinancing you will have to fit into all of the guidelines that are setout by the FHA. The FHA does not lend this money. They set the guidelines and private mortgage companies all around the country lend this money out, if they follow these lending guidelines the FHA will insure this money if the loan gets defaulted on, so for many of these lenders it is a no lose deal.
With an FHA loan you can do a refinance up to 97% of the value of your home. If you are taking cash out of your refinance you are only allowed to go up to 95% of the value of your home. You will also have to be able to prove that your income is real by showing your past two years tax returns. Also the FHA has their own list of appraisers that are able to appraise the value of your home. They will have to do this to ensure that your home is worth the correct amount so that the lender can lend on the property. For many homeowners in this market this is very difficult.
Apply Now for your free consultation!
