Bad Credit FHA Refinance Options

If your credit score is not the greatest, you may be considered to have poor credit. However, 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, which is often a reason to deny the loan. While it can be challenging to get a bad credit mortgage or mortgage refinance, it is possible. There are actually a few FHA refinance options for poor credit.

Because FHA loans are basically insured by the government, more lenders are willing to work with them because they are a lower risk loan. This allows the FHA loan options to be 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 a favorite loan product for bad credit mortgage loans and mortgage refinancing.

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

FHA programs have helped many people with poor credit get mortgage refinancing which lowers their payments and makes it possible for them to make their payments, which 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. This means that you will require less documentation and the whole process will be much easier.

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.

Unfortunately, many people with poor credit automatically assume that there is no help for them if they need to do a mortgage refinance. However, FHA programs have helped many people in that situation to get a bad credit mortgage or refinance. Never give up without checking out your options, and if you don’t qualify now, you can work to qualify in the future.