| Today's home mortgage refinance world is much | | | | are in the 500 to 579 credit score range, but below a |
| different than the home refinance boom encountered | | | | 580, all hope is not lost. Many borrowers in this position |
| from 2003 through much of 2007. Among the hardest | | | | turn to the aid of a credit repair company. Many times, |
| hit by the new and stricter underwriting guidelines are | | | | a credit restorer can make rather dramatic increases |
| those refinancing with bad credit. In years prior, a | | | | to credit scores in a short amount of time. Scores can |
| borrower with a mid fico score as low as 500 could | | | | easily be bumped up by up to one hundred points in a |
| get home refinancing with somewhat competitive | | | | matter of 60 to 90 days for a cost of a few hundred |
| refinance rates to boot. Much of the bad credit | | | | dollars. If your new refinance home loan nets you a |
| refinance loans were written by subprime lenders that | | | | substantial financial benefit, the upfront cost for credit |
| allowed low credit scores and relied upon the | | | | repair is well worth the investment and should pay for |
| assumption that home values would continue to | | | | itself many times over. With that said, do your |
| increase by a minimum of 5 percent each year. As | | | | homework if you are considering the services of a |
| we all know now, those assumptions were incorrect | | | | credit repair company. There are some that will charge |
| and subprime lenders are now scarcer than a regional | | | | their clients much more than is necessary and may |
| housing market with appreciating home prices. So | | | | even delay your credit score increase if they put you |
| where do you go today if your credit scores are bad | | | | on a monthly payment plan. |
| and you want or even need to refinance? An FHA | | | | The best news for those refinancing with bad credit is |
| refinance mortgage home loan just might be the | | | | that you will receive low competitive refinance rates |
| solution for those with less than perfect credit. | | | | with an FHA mortgage. FHA refinance rates are |
| What credit score do I need to be eligible for an FHA | | | | comparable to conventional prime mortgage rates for |
| refinance? In most cases, a minimum mid fico score of | | | | those with good to even great credit scores. So don't |
| 580 will be required for those refinancing with an FHA | | | | despair if you are refinancing with bad credit. Check |
| refinance. In all reality, the FHA refinance program itself | | | | with a lender to see if you qualify for an FHA |
| is not score driven, but the underwriting lenders are the | | | | refinance and you just may be surprised at the |
| ones that require that 580 minimum score. Now if you | | | | mortgage program available to you. |