Many clients think their credit is worse than it is. Even with poor credit getting a home loan is still possible. A lender will consider you to be a risky borrower and to compensate for this they will charge you a higher interest rate, and expect a higher down payment usually 20%-50%. The worse your credit history is, the more you can expect to pay.
Refinancing is a bit different animal. With NonQM lending you can now refinance for bill consolidation up to 90 percent of appraised value of your home. With FHA recently cutting their bill consolidation refinance back to 80 percent like Conventional loan programs we firmly expect these NonQM (much lower credit scores accepted) Mortgage programs to become more attractive for people needing to consolidate credit cards, a 1st & 2nd mortgage, and other personal debt. Homes have increased substantially recently. Use this new equity to get out of debt quicker. Call our Mortgage team today for a free debt consolidation analysis.
We'll also advise you of steps to take to improve your score and get out of debt sooner if that's your goals. We can run a credit simulator with our credit vendor that will tell you what steps to take to get your scores up. It might involve paying credit balance down to certain levels or other small details. Once you follow the steps you can actually pay for a re-score and possibly qualify for better rate and higher loan to value loans. It's up to you but we're always glad to assist you.