If you have bad credit, refinancing your mortgage may still be an option worth exploring. Various programs and strategies can help you secure a better deal even with a low credit score. Start by contacting your current lender, as they may offer favorable terms for existing customers. If you have an FHA loan, consider the FHA streamline refinance, which requires no income verification or credit check, provided you have a history of on-time payments. Veterans can explore VA streamline refinancing options, while USDA loan holders may qualify for the USDA Streamlined Assist program, which also bypasses credit checks. If you have a strong relationship with your lender, a portfolio loan may be more accessible, as these lenders often have flexible requirements. Additionally, consider getting a co-signer or exploring programs like Fannie Mae’s RefiNow and Freddie Mac’s Refi Possible, which cater to low-credit borrowers. While refinancing can lower your monthly payments, it’s essential to weigh the potential costs and impacts on your credit score before proceeding.
Read the full article here.