If you have bad credit, you might be wondering if you can still refinance your mortgage. The good news is that there are options available to you that can help you save money on your mortgage payments and improve your financial situation. So, without further ado, here are 3 options for refinancing a mortgage with bad credit and what you need to know about each one.
1. Find a Lender Who Works with Borrowers with Bad Credit
The first step to refinancing your mortgage with bad credit is to find a lender who is willing to work with borrowers with bad credit. There are a number of lenders for a refinance mortgage out there who specialize in helping borrowers with bad credit get the financing they need. These lenders help by offering bad credit mortgage products that have more flexible terms and conditions than traditional mortgages. They also work with borrowers to help them understand their options and find the best solution for their needs.
2. Get a Cosigner
One option for refinancing your mortgage with bad credit is to get a cosigner. A cosigner is someone who agrees to sign the mortgage with you and is responsible for making the payments if you default on the loan. This option can help you get approved for a mortgage with bad credit because the lender will look at the cosigner’s credit score and income instead of just your own. However, it’s important to be aware that if you default on the loan, the cosigner’s credit will be affected as well.
3. FHA Streamline Refinance
If you have an FHA loan, you might be eligible for the FHA streamline refinance program. This program is designed for borrowers who have made their payments on time and who have equity in their homes. To be eligible, you must also be current on your mortgage payments, and you must not have missed any payments in the last 12 months. The benefit of this program is that it can help you get a lower interest rate and monthly payment. Lastly, there is no credit check required to qualify for this program.
To Sum It Up
These are just a few of the options available to you for refinancing your mortgage with bad credit. Talk to a mortgage professional to learn more about your options and find the best solution for your needs. So don’t wait; start exploring your options today.