HOW TO REFINANCE A MORTGAGE WITH BAD CREDIT FLORIDA

Property Type:

• Single Family
• 2 Unit
• 3 Unit
• 4 Unit
• Manufactured and mobile homes
• Condo (must be FHA approved)
• Townhouse
• PUDs

Refinance

• Minimum credit score of 500 required
• No mortgage late payments in the last 12 months
• Up to 80% LTV for cash out refinance
• 30 Year or 15 year Term
• Quick and smooth process

How to Refinance a Mortgage with Bad Credit?

To refinance a mortgage with bad credit, the first step is to contact a loan officer. A loan officer will help guide you through the process from beginning to end.

A minimum credit score of 500 is required. You must have 12 months of on time mortgage payments and at least 20% equity in the home after cashing out. The subject property must be your primary residence.

Having late payments on other accounts is allowed as long as the mortgage has been paid on time for at least 12 months.

Benefits of Refinance a Mortgage with Bad Credit

• Consolidate Debt: Refinancing can provide the opportunity to consolidate high-interest debts, like credit card balances, into your mortgage. This can result in lower overall interest rates and a single monthly payment.
• Cash-Out Refinance: With a cash-out refinance, you can tap into your home equity and receive a lump sum of cash. This can be used for various purposes, such as home improvements, debt consolidation, or investments.
• Reduce Total Interest Costs: Refinancing can help you pay less in total interest over the life of your loan, especially if you’re switching from a high-interest rate to a lower one.
• Improve Credit Score: If you’ve built up equity in your home and have a better credit score since your original mortgage, you may qualify for a better interest rate, potentially saving you money.
• Home Renovations: Refinancing can provide funds to finance home improvement projects that can increase the value of your property.
• Debt Management: Refinancing can help you manage your financial situation better by reducing monthly expenses or consolidating high-interest debts.
• Financial Flexibility: Depending on your goals, refinancing can provide the flexibility to achieve financial objectives, whether that’s saving for retirement, funding education, or investing.

Required Documentation

If you’re a W2 employee, the most recent 30-days paystubs and last 2 years W2 will be required. If you’re self-employed, the last 2 years tax returns (all pages) will be required. A photo ID will be required along with a copy of your most recent mortgage statement, if applicable.

Refinancing a mortgage with bad credit may come with higher interest rates and more limited options, but it can still be a viable way to improve your financial situation. Contact us today to see if you qualify.

Frequently Asked Questions (FAQs)

Can you refinance if you have poor credit?

Yes. A long as you have a minimum credit score of 500 with no mortgage payments in the last 12 months, then you have a high chance of qualifying.

Will I owe more if I refinance?

If you change the term from 30 years to 15 years, your monthly payment will be higher but you'll make few interest payments over the life of the loan.

How much equity do you need to refinance?

You need at least 20% equity to do a cash out refinance.

What will disqualify you from an FHA refinance?

Having a credit score under 500, having a high debt-to-income ratio and recent mortgage late payments in the last 12 months will disqualify you from an FHA refinance.