Home Refinance Loans with Bad Credit: Save Precious Dollars by Applying Today

Refinance Home with Bad Credit: Determine If You Are a Candidate

To be approved for bad credit home refinancing through us, you must meet the below mentioned basic requirements.

• Credit score must be 580 or above
• Must not have late payments during the last 1 year
• Should be current on payments for all credit accounts
• Must not bankruptcy, short sales or home foreclosure record in past 36 months
• Your Debt-To- Income or DTI ratio must be under 43%
• Should be willing to pay around 3.5% down payment
• Must have stable employment record for last 2 years
• Give proof of income in the form of copies of paystubs, tax returns and W-2s.

Criteria for Refinance a Home with Bad Credit Through Us

Majority of the banks will check the following aspects prior to approving you for a low interest rate home refinance for bad credit.

• Stable & regular source of income
• Lower Debt-To-Income or DTI ratio
• Exact status of applicant’s credit profile
• Equity built in home or ability to pay down payment

Refinance Homes with Bad Credit: 5 Important Tips to Save Money

Here are 5 vital guidelines to simplify the task of refinance home with bad credit score to a lower rate.

• Check credit report – To make sure that you qualify for the home refinance loans for people with bad credit for your circumstances, get errors removed from credit report by obtaining free annual copies from credit bureaus.
• Improve your credit – You may have better chances of getting approval for refinancing home with bad credit if you take effective steps for improving your credit.
• Explain the situation – Honesty pays so give all correct and verifiable information to lender about the steps that you have taken for reducing your debts.
• Prove you can repay – To show that you can repay home refinance bad credit history loan, you have substantial savings in your bank’s checking account or give proof that you have some other valuable assets for repaying loan dues. Such prerogatives might even enable you to get access to the lowest interest rate too.
• Get your loan co-signed – For enhancing chances of being instantly approved for a refinance home bad credit; you can get a co-signer, who has excellent credit reputation, to co-sign the loan that is being provided. Co-signers are responsible for paying missed payments and so lenders get assurance that money lent is recoverable.

4 Obstacles You May Face When Getting Bad Credit Home Refinance Loans

• High interest rates – The interest charged for home refinance loans for bad credit could be high. However, it is possible to obtain sustainable interest rates by undertaking extensive shopping. The task could be challenging but when you have a mortgage specialist to guide you during your effort, the process will be stress-free.
• Home equity levels – You will experience difficulty in refinance your home with bad credit to a lower rate if your current mortgage is “underwater”. In such a situation, your best bet is to see if you can qualify for HARP which is specially designed to assist borrowers who owe more on their homes than their actual worth.
• Poor credit ratings – Missed debt payments, job loss, rising high interest credit card dues, past home foreclosure or bankruptcy record can contribute to sagging credit profile.
• Loss of employment – In case your income has dwindled due to loss of job or reduced working hours, things will be more complicated on the home refinancing front.

How it works