Being approved to refinance with a fico score under 500?

Question

Can someone be approved with a credit score under 500 and what are the banks that provides this option

Answer 1

Without mentioning what loan-to-value you need, it's impossible to answer.

There are extremely few banks left that will touch anyone under 500, or even 520. The default rates are just too high to make any money at it. The ones that will, might lend you up to 65% of your home's value, at 12+% interest. Eastern Savings, Delta Funding, and dozens of "hard-money" lenders are out there doing this. Hard Money means they are lending only against the collateral, your home, not your ability to repay the loan. High risk, high rates, bad for the consumer in most cases.

FHA loans have no minimum score, but will look at your payment history in the past 12-24 months. If you have no new bad credit in the past 12 months, you might qualify for an FHA loan.

Answer 2

Try a mortgage broker. They tend to have a lot of programs for the different needs of each of their clients. There are a few lenders that I work with that will allow for under 500 fico financing, but the interest rate is never pretty and they are usually 6 month - 2 year adjustable rate mortgages. These programs are designed not just for the money needed for the loan, but to improve your credit. It's a hard road to go down, but easier on your credit than bankruptcy.

If you have more questions, or want more info, email me or check out our website.

[e-mail]

http://aapexfund.com

Answer 3

There are some lenders that go sub-500, however they typically limit the amount you can borrow to 70% (of the value of the home) or less, and the interest rates are reflective of the risk of lending to a borrower with a FICO score under 500. I would recommend that you work on repairing your credit before taking out a loan.

Answer 4

been there, done that... my problem was with a lousy mortgage company but the end result was the same. i don;t have a second mortgage though. i went through so many of the brokers who all promised they could refinance my house only to have them all fall away. my credit was mid 500's when i started. i ended up in a chapter 13 bankruptcy to save my house when every loan promise fell through and i was a week away from the auction block. act now and either sell while you may still be able to get some equity out or sell to a family member who will either rent back to you or sell back to you on a land contract or something (not usually a real situation unfortunately). check with a bankruptcy attorney and see if there is a way to go that route, but going that way you have to be able to afford the payments plus payments on all your other debts as drawn up in the chapter 13 plan. good luck, i hope things work out for you!

Answer 5

There's MUCH more that go into it. It's possible, but it depends on LTV, lates, etc. The rate will most likely be outrageous, but it can be done.

E-mail if you want to give more info. I'm part of a big network of brokers. I can get you in touch with the right person for your state.

Answer 6

CNG Capital; I can email you their contact info. Hard money loan, sign up at www.totaldebtsolutionsllc.com and if you are approved with CNG you will get a free credit restoration service.

Answer 7

yes you can. but you need money down or have the seller hold a 2nd mortgage.

Answer 8

doubtful