Question: How to get a refinance loan with bad credit?

(Posted by: choseluv on 2008-03-26 22:20:51)

Posted by: loanmasterone on 2008-03-26, 22:29:13

If you have kept your mortgage current and not missed a payment in the last 12-24 months you may request a mortgage only refinance. The lender will consider only your monthly mortgage as a basis for credit. They will not consider you credit scores nor other credit items on your credit report. If you have bad credit, you might be required to explain the reason. With this program you will have to qualify with income and debt to income ratios. All those things being in order you should not have a problem. To start you should contact a mortgage broker so as to complete a loan application. Since this is a refinance you know the necessary items you will need to start out. That has not changed. I hope this has been of some use to you, good luck. "FIGHT ON "

Posted by: BillWill3 on 2008-03-26, 22:54:51

Your first and probably best approach is to contact the lender that holds your existing mortgage. This lender can often refinance your loan easier and at the least cost to you. If you are only trying to get a lower rate or a lower monthly payment, but do not want any "cash out " of the property, you will find it easier to qualify, even with less than perfect credit. Depending on the type loan you have, you may not even need a new appraisal. If your current lender cannot make you a refinance loan, ask for help in understanding exactly what is preventing you from qualifying. Often some things can be done to improve your credit status, such as paying off collections that are unpaid. Or you might be able to pay off credit card balances or sell a vehicle with a high payment and buy something with a much lower payment. Or you may be able to boost your income with a second job and thereby improve your ability to repay the loan. You may be able to find ways to do these simple things and the lender might consider approving you if this is done. Finally, if you are trying to refinance in order to avoid seeing your adjustable mortgage "reset " to a higher payment, definitely contact your lender and ask about any of the special work out programs that are becoming available to help people keep their homes. Some lenders are adjusting the terms of mortgages making it unnecessary to refinance at all. A few lenders are even writing off some of the principle amount you owe them in order to make it easier for you to remain in the home and make a lower payment! Do look at all your options. If you do go to a different lender than the one that has your mortgage, avoid dealing with a mortgage broker. Instead find a lender that directly originates, underwrites, and funds their own loans. Today, most of the major nationwide lenders and many large banks do this. A mortgage broker, on the other hand, simply processes your application then "shops " it to a true direct lender to try to find one who will "buy " your mortgage from the mortgage broker. Mortgage brokers tend to add another layer of costs to the transaction and generally cannot do anything nearly as well as a direct lender. Best of luck to you!

Posted by: shelly on 2008-03-26, 23:43:27

Having bad credit is not a problem anymore. There are lenders that gives people with bad credit a second chance. Thye give loans even if you have bad credit score. Check this resource: badcreditresources.com/ bad-credit-car-loans.html I hope this will be helpful to you