Home Mortgage Refinance Programs for Low Score Borrowers
If you ask three different people what a low credit score is, you will more than likely get three different and rather diverse responses. If you are planning to refinance your home mortgage, then you need to know what the lenders think low credit scores are.
For the longest time, a credit score between 500 and 580 was considered to be “low” home mortgage qualifying territory. Unfortunately for those with weaker credit scores, that picture has changed. A 620 mid fico credit score is the new “low” credit score, and in fact, most borrowers cannot get a home mortgage refinance with a mid score that is lower than a 620. Some of the best home mortgage refinance programs available for those with low credit scores are FHA home loans. The rates are near conventional and you can refinance up to 97 percent of the value of your home.