In a excellent world every person would have a 720 prestige score and a problem free prestige history. Unfortunately we live in reality and the truth is that many home owners have less then excellent prestige scores. While bad prestige can make refinancing a home loan difficult getting a mortgage with bad prestige is surely easier then you think.
The first thing you must settle is how bad your prestige surely is. Knowing your prestige score will help settle your loan options and save you the sick of having to apply for a mortgage only to be turned down.
Bad prestige Refinance Options
If your score is 600 or higher then you more then likely will be able to secure a good low fixed rate Fha mortgage. Keep in mind that Fha requires your last 12 months mortgage payments to have been paid on time and your debt to revenue ratios need to be at or colse to 42%. Fha will refinance up to 97% of the value of your home so it works well for citizen with slight to no equity in their primary residence.
If your prestige score is under 600 and not below 500 you surely have no other option but to use a sub prime lender. Although they have gotten a lot of bad press lately sub prime loans can help citizen refinance their homes when other lenders turn them away. However never under any condition take a sub prime adjustable mortgage and all the time opt for the fixed rate. Sub prime loans allow you to refinance with mortgage lates, open collections and many other derogatory prestige situations.
However if your prestige score is under 500 you have some serious work to do because even sub prime lenders will not lend to borrowers with prestige scores under 500. At this prestige score level you have two options. You can either invest some time and money into prestige heal to improve your scores to the level where you can secure sub prime financing. The other option is for you to use a hard money lender. Hard money lenders typically have very high interest rates and loan fees and should only be used as a last resort. They also only typically lend up to 70% of your homes value so they may not be able to help every person based on those equity requirements.
Options For Getting A Mortgage With Bad credit