With a credit score below 500, refinancing your home isn’t impossible but it still might present some challenges. Fortunately, some refinancing options available have flexible lending requirements.
You might want to consider a Federal Housing Administration streamline refinance since the process does not always require that your employment, income or credit score are checked, although many lenders may still require one.
A second option:
If you are married and your spouse has a higher credit score, you may be able to put the refinance in his or her name only, sidestepping the issue of your lower score. If considering this option, it’s important for your spouse to check his or her credit report several months for applying for the refinance to make sure there are no surprises before you head to the bank.
A third option:
Finally, you also may be able to work on the problem by spending some time creating a pattern of using credit responsibly. Once you develop better credit habits, you might be able to show lenders you’re a responsible borrower and less of a credit risk.
About the Author
Solomon Poretsky has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Poretsky holds a Bachelor of Arts in political science from Columbia University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.