Bad Credit Mortgage Refinance Tip [mortgageuseful.blogspot.com]
The FHA secured loan is designed for people who are facing inevitable foreclosure due to mortgage payments adjusting beyond their means of affordability. If you took out an 80/20 or ARM loan back before 2007 then you probably are aware now that your rates were not fixed. For many people in the economy this is financially devastating because with the rate increase you are probably making less money and the ability to make your house payment has probably been diminished.
The secured loan from FHA is designed to help those with adjustable rates afford their home by switching their loan to a lower more affordable fixed rate.
What exactly are the guidelines to qualify for these types of loans? We have created a list of the requirements that must be met to qualify for this life saving loan program.
Your credit history must reflect prior on-time mortgage payment history BEFORE your mortgage rate was adjusted.
You must have a stable employment history for the last 2 years shown by yoru last 2 years of W2's.
The home you live in must be occupied and you either need 3% of equity in your home or 3% cash for a down payment.
You must be able to prove your income to pay for the new loan and new fixed rate.
This proof can be obtained by your last 2 paystubs.The adjustable interest rate on your home must have been set to adjust between June 2005 - December 2009. Loans taken out today by borrowers will not qualify for this program in the future.
The nice thing about this type of loan is that there is no pre-payment penalty if you come into some money and want to pay the loan off early. If you qualify for this type of loan, FHA can get your home out of the pre-foreclosure or foreclosure status within 14-21 days.
Recommend Bad Credit Mortgage Refinance Tip IssuesQuestion by Just Wondering: Why can u buy a house with bad credit but not refinance a house with good credit? I have been trying to refinance my house for 2 or 3 months now. I have a credit score of 684. I have never had any late payments on my mortgage. Why can't I get my house refinanced? Best answer for Why can u buy a house with bad credit but not refinance a house with good credit?:
Answer by robert
If you have good credit and a good payment history there shouldn't be a problem. Maybe you should ask the banks that are turning you down what the reason is.
Answer by amymcmahon23
It doesn't sound like you should be turned down. Unless your debt to income is bad. Debt to income is the amount you bring in vs. the amount you pay out in bills. If a lender feels that you are currently unable to pay your obligations, they may not be wililng to take on your loan as a refinance. If this is the problem, you may need to talk to lenders about consolidating your debt with your refinance to lower your overall monthly payments. Since your credit score is good, this should be an option for you.
Answer by kelly h
There are more factors that go into buying or refinancing a house then just a good credit score. People get turned down for any number of reasons. Just a few are because house isn't appraising high enough, the person has too much debt, not enough job time, they could have tax liens and on and on. Some lenders won't approve the loan if the borrower has a large prepayment penalty on their current mortgage or if there is no true benefit to the borrower to refinance. You don't say who you have been trying to get the refinance with. By law, if you are turned down for a credit, you are supposed to be sent a denial letter telling you why you were denied the loan. Have you not received these letters? In any case, the best way to get a mortgage, is to find a mortgage broker in your area and let him handle it. You obviously have something in your circumstances keeping you from getting the refinance. A broker can probably help you with whatever it is. Don't go through your bank because banks have much tougher guidelines that they go by. Also, I wouldn't try to go on line and apply for a mortgage either. They won't take the time to help you that a local broker will. If you get denied again, ask the broker why you have been denied. You need to find out what the problem is, so that you can work on correcting the problem.
Answer by ihateinternetdating
Your debt ratios must be off... they won't go over 50% total debt load. Try this... tell them you'll pay off some of your bills with the re-fi money that's available. That should change your ratios to make it doable. Call this guy, I LOVE him!! If he can't get your loan through it can't be done. This company does mortgages in almost every state in the country. Alex Kim Sunlight Capital Commercial & Residential Mortgage Front Office: 800-990-8011 Ext 102
Answer by pokerplayer528
Different things trigger bad responses from different lenders. The following site has an easy form to see if you qualify. I know they specialize in weak debt to income ratios. Good Luck to you.
Answer by wnichols00
It is probally the lack of equity you have in the property. With that fico score you can refinance up to 100% of your current value. Find out what the value of your property is and divide the new loan amount / by current value you should most likely want to be below 80% but can go up to 100%
Answer by the dream
There are lots of factors including debt to income ratio but also loan to value ration which could be thrown off in a slumping housing market. If the market is down, it is hard to get comparable appraisals to justify what we want your house to be worth. You may need to check into creative financing including hard money lending. There is a fr ee situation evaluation form at www.totaldebtsolutionsllc.com
Answer by kevingeorgecampbell
You sound more than qualiified, so the only real reason is that your not working with a lender or broker that knows what they are doing.Your situation is not uncommon and it is a result of so many people entering the loan business in the last two years. If you have a 684 credit score there are lenders that will work with you regardless of what's actually in your credit report or what your income is. In fact, there are lenders that will refinance your mortgage even if you owe more than what your home is worth. They will even go up to 125% of your homes value. The only question that you need to ask yourself is not whether you can qualify, because you can. The question is whether the loan you can qualify for will actually benefit your situation. 1st: You have to consider whether your refinancing to lower your payment or if is to get cash-out. Cash-Out: If it is to get cash-out, then you will have to consider if the cost of getting the cash is more or less than the cash itself. You should also consider whether getting the cash will allow you to accomplish your long term financial goals. It may make more sense to forego the cash and save up for what you need instead. Lower Payment: If you are looking for a lower payment then you should take a close look at the term of the new loan that you will get. Beware of exotic loans that have a lower initial rate that might come back to haunt you later on. this may still be a good option but you hve to consider how long you'll be in this home and what the market may look like in the future. If all this sounds daunting you can feel free to give me a call to go over everything the right way. Email me and i will be sure to give you all of my information.
Answer by Carly C
Are you underwater? I'm not sure why you are having that problem. Try looking first for information on a neutral site like http://refinance-and-loans.com/ and also consider state issues.
Answer by insureman613
Maybe you aren't trying with the right places!. You should try to apply with eloan, they will do the best job with it. They have a promotion now, If you use this link http://www.tkqlhce.com/click-2177451-10427742 they will waive the lender fees.
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