Refinancing a Mortgage with Bad Credit

While less-than-perfect credit may reduce your mortgage options, it can be worked around when refinancing a home loan.

Cash Out Refi

Looking to liquidate your home equity means getting a cash-out refinance loan.

BAD CREDIT REFINANCE OPTIONS

FHA Streamline Refinance With Bad Credit

If you have an existing FHA mortgage, one option is to apply for an FHA streamline refinance. This is a great option if you have a low credit score because a streamline refinance doesn’t typically require a full credit check or income verification.

To qualify, your FHA mortgage with your current lender must be in good standing, meaning you don’t have any late payments. A streamline refinance can help you get a lower interest rate, a lower monthly payment or a fixed-rate mortgage.

VA Interest Rate Reduction Refinance Loan (IRRRL)

If you have an existing VA loan (and a low credit score), you may also qualify for an interest rate reduction refinance loan backed by the Department of Veterans Affairs. You might be eligible after you’ve made at least six monthly mortgage payments on your current VA loan.

This is a great option with bad credit because there’s no minimum credit score requirement. With this type of refinance, though, you can’t borrow cash from your equity. If you’re looking to lower your interest rate, adjust your mortgage terms and get cash, you’ll need to apply for a standard VA refinance. This type of refinance isn’t streamlined, so you’ll provide more documentation. However, you can still get approved with a low credit score.

Apply for a Refinance With Bad Credit

Whether you’re looking for a rate-term refinance or you want to cash out your equity, don’t let a bad credit score prevent getting a better interest rate and a lower monthly payment. Our loan experts can help you reach your financial goals. Let's discuss your refinance options. Contact us to find a loan officer in your area.