Posts Tagged ‘Loan Application’

Bad Credit Refinance Options

November 25th, 2009



Benefit

Refinance opportunities for people with challenging credit come in two main areas:

mortgage lendershard money lenders New Loan Options One of the most critical factors helping someone with bad credit is equity in the property.

If there is enough equity in a property then lenders will look much more favorably on a borrower with bad credit. For example. if the property is worth $300,000 and the mortgage is for $150,000 the borrower will have many lenders looking at their loan favorably.

Some lenders have not required a credit score if there is enough equity in a property (this is when a person owns more than 40% of the value of the property).

Hard Money Lenders

Hard money lenders offer loans for people who can’t be approved by regular lenders. People turn to hard money lenders because of the speed of their decisions and their flexibility. They can look beyond credit situations and look at the bigger picture. Hard money lenders usually also require a lot of equity.

Co-Borrowers

Some borrowers choose to include a new co-borrower on their application who has a higher credit rating. A borrower who is on a loan application but who does not live in the property is known as a “non-resident co borrower”. Some lenders allow this, and some lenders will not. It also depends on what type of loan the borrower is looking for.

Often times a lender will figure out a borrower’s debt burden after their credit card and other debt is paid off through a refinance.

By: Ben Afzal

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Bad Credit Refinance Loans – Refinancing With A Low FICO Credit Score

November 19th, 2009



Your financial situation may have changed for the worse since you first purchased your home. You may have had a great credit score, above 700 but now you find yourself with a low FICO score below 640 (be it 450, 500, 550, 600 or 620).

You need to refinance your existing mortgage loan to take cash out of your home for a home improvement project, credit card debt consolidation or other purposes. The big question is “can you get a mortgage refinance loan with a low credit score?

The answer is “yes”.

Contrary to popular belief, life doesn’t end, when your credit score dips below the magic 670 number. Yes – it is a true that a person with a credit score above 670 will find it easier to get a mortgage refinance loan than a person with a low credit score – but this is doesn’t mean that you cannot find a loan.

How to find a poor credit refinance loan
1. The key to finding a lender, who specializes in low credit score refinance loans is to do your research. The power of the internet cannot be underestimated, when it comes to shopping for a poor credit refinance lender.

2. Once you find a lender, ensure that you complete their application form, thoroughly. Remember that you are competing with other applicants, who have excellent credit scores. Leave nothing to chance.

3. Be truthful on your loan application. Don’t indicate a “fair” credit rating (620 and above), when you have a “poor” credit rating (any credit score below 600). A lender who specializes in low credit score loans is used to working with consumers with all credit scores and will not turn you down immediately, upon seeing a credit score like 500. Other details on your application form, will factor into the lender’s final approval decision.

By: Sharon Listner

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