Can I Refinance With Late Mortgage Payments

admin — Sat, 08 May 2010 11:22:07 +0000

Being late on the mortgage is something that many home owners never experience. But for those who have had past due payments they know how stressful it can make life. You have probably asked yourself, can i refinance with late payments? Well rest assured because the answer is yes! Read on to find out what programs will allow you to refinance when you have delinquent mortgage payments.

Late Mortgage Refinance Programs

How long ago your late payments occurred will dictate what programs you can use to refinance your home loan. If they were over twelve months ago you can use FHA programs to not only get a low rate but also a stable fixed rate mortgage as well. To qualify for this type of loan you will need to have debt to income ratios below 45% and your property taxes must be current.

Your other option would be a sub prime loan. Sub prime mortgages are available for borrowers that have late payments up to ninety days late and credit scores down to 500. The only drawback to these loans is they have high interest rates that often are over 10% and they also do not allow you to borrow much more then 80% of your homes value. Many sub prime loans are adjustable mortgages and if you cannot get your credit up to a higher level when the ARM begins to adjust you could be in for a major problems. While these loans have gotten alot of bad press lately they can help you get straightened out but only if used correctly. If you are taking out this type of loan make sure that you opt for the fixed rate option.

When you start to miss mortgage payments and realize you need some sort of help it can seem overwhelming. But take a deep breath and talk to a seasoned mortgage broker who can help get you into the right loan program to keep your home from foreclosure and your credit rating in tact.

By: Darin Sewell

Options For Getting A Mortgage With Bad Credit

admin — Sat, 06 Feb 2010 09:21:18 +0000

In a perfect world everyone would have a 720 credit score and a trouble free credit history. Unfortunately we live in reality and the truth is that many home owners have less then perfect credit scores. While bad credit can make refinancing a home loan difficult getting a mortgage with bad credit is actually easier then you think.

The first thing you must determine is how bad your credit actually is. Knowing your credit score will help determine your loan options and save you the headache of having to apply for a mortgage only to be turned down.

Bad Credit Refinance Options

If your score is 600 or higher then you more then likely will be able to secure a good low fixed rate FHA mortgage. Keep in mind that FHA requires your last 12 months mortgage payments to have been paid on time and your debt to income ratios need to be at or around 42%. FHA will refinance up to 97% of the value of your home so it works well for people with little to no equity in their primary residence.

If your credit score is under 600 and not below 500 you really have no other option but to use a sub prime lender. although they have gotten a lot of bad press lately sub prime loans can help people refinance their homes when other lenders turn them away. However never under any circumstance take a sub prime adjustable mortgage and always opt for the fixed rate. Sub prime loans allow you to refinance with mortgage lates, open collections and many other derogatory credit situations.

However if your credit score is under 500 you have some serious work to do because even sub prime lenders will not lend to borrowers with credit scores under 500. At this credit score level you have two options. You can either invest some time and money into credit repair to improve your scores to the level where you can secure sub prime financing. The other option is for you to use a hard money lender. Hard money lenders typically have very high interest rates and loan fees and should only be used as a last resort. They also only typically lend up to 70% of your homes value so they may not be able to help everyone based on those equity requirements.

By: Darin Sewell

Bad credit refinancing » Debt To Income Ratios

Can I Refinance With Late Mortgage Payments

Options For Getting A Mortgage With Bad Credit