Subprime Mortgage Refinancing

Our refinance lenders offer alternative financing for borrowers seeking subprime loans, but have poor credit scores. We offer offers sub-prime mortgage refinancing for borrowers with less than perfect credit seeking cash out equity loans and fixed rate mortgages for debt consolidation and reestablishing credit. Nationwide extends FHA refinancing programs that enable homeowners with bad credit to refinance into a fixed rate loan that save reduces their interest while freeing some cash flow from the lowered monthly payment. Finding a subprime lender that approves non-conforming loans and hard money refinancing is not easy. For nearly two decades we have been extending credit with our popular mortgage refinance loans for subprime borrowers.

Our Subprime Mortgages Provide New Opportunities for People with Poor Credit and Issues with Equity and Income Documentation

We provide lending programs that are designed for the non-prime refinancing market so homeowners with poor credit scores can still have the ability to cash out and refinance to achieve lower payments. For borrowers who have earned a lot of equity, we offer a streamline refinance with no income documentation features that make the loan process quick and easy.

Subprime Mortgage

Even though many of the subprime lenders folded their shops, we continue to provide subprime mortgage refinancing for borrowers across the United States. The great feature about out our bad credit loans is that the rates are low and the credit guidelines are considered aggressive.

Second mortgages are very popular loans for people who need help accessing cash, but if your credit is below 500 fico, you will probably need to qualify for a hard money loan. Unfortunately, in most cases the equity loan market needs a 600 fico unless you have a significant amount of equity available in your home.

If you are ready to rebuild your credit history and lock your mortgage into a fixed rate, then give our loan team a call to get started.

Sub-Prime Mortgage Refinance

Past Bankruptcy OK

Non-Prime Home Equity Loans

Fixed Rate Subprime Mortgages

Cash Back Refinancing

Stated Income Home Refinancing

Sub-Prime 2nd Mortgages

Combine 1st and 2nd Mortgages

Consolidate High Rate Debts

FHA Home Loans for Bad Credit and Cash Out: Learn more about refinance adjustable rate debts and save money with lower monthly payments.

Subprime Refinancing

Sub-Prime Mortgage Refinancing for Homeowners with Poor Credit

Over the last five years we have seen the largest leap in foreclosure ratios ever, and 12.6% of the defaults were among sub-prime borrowers—people with low FICO scores. As a result of the increase in payment defaults with non-conforming loans, sub-prime loans are under scrutiny by various regulators seeking to tighten the standards for these risky loans.

An estimated $600 billion in adjustable rate mortgages (ARMs), of which two-thirds are sub-prime, are due to reset this year. The sharp rise in interest rates over the past few years means many homeowners will face payment shock when their loan resets.

Lenders have had problems with loans for people with unstable incomes, resulting in a tightening of their income standards. And, with the rise in defaults, other underwriting standards are due to tighten significantly. This will make it harder for sub-prime borrowers to get an unconventional bad credit mortgage or bad credit second mortgage to pay off tax liens, credit card debt and other debt to avoid bankruptcy.

However, some are still reckless in their lending practices. A feature story at Origination News warns of mailed and faxed ads used to market incentive-laden refinances to California borrowers. "These types of advertisements are dangerous for consumers and especially those with credit issues," said Jack Williams, president of the California Association of Mortgage Brokers, in an association press release.

According to an article found on National Mortgage News entitled "HUD: FHA Reform Best Sub-prime Cure", HUD Secretary Alfonso Jackson told a congressional panel that the best way to "cure" the serious problems in the sub-prime market is to pass Federal Housing Administration reform legislation that will allow lower-income homebuyers to get safer and affordable loans. But, FHA's loan limits are low compared with modern mortgages, and they've traditionally been inflexible on their down payment requirement. The sub-prime market has a very important role to play for many borrowers. Sub-prime loans allow many homebuyers who could not otherwise get into a home achieve the dream of homeownership.

What should I do?
Some people think they can resort to private lending (hard money loans) to bail them out of foreclosure. But, it's only meant to be a short-term solution and is certainly not for the debt-laden consumer facing bankruptcy and/or foreclosure. Hard money loans can cost more than 20% annually, and you have to have a lot of equity (typically around 55%-65% combined loan to value) to be able to get a hard money loan.

Refinancing to help you avoid foreclosure is still a viable option, especially if you refinance into a fixed-rate mortgage, but be sure you do it with a reputable lender. The rate difference between fixed-rate and adjustable-rate mortgages is now pretty negligible. Plus, your interest rate will remain constant through the life of your loan even if the interest rates rise again. Research the lenders yourself, and steer clear of mailed and faxed advertisements. That's how a lot of people got in trouble in the first place.

FHA Refinance Loans Offer Fixed Rates

FHA home loans provide competitive 30-year fixed interest rate terms. FHA loans are offered up to 97% rate and term or 95% for refinancing terms with cash out or debt consolidation.

Many borrowers have suffered financially because their variable mortgage rate has been increasing. Unfortunately many homeowners do not qualify for conventional refinancing because guidelines have tightened and property values have deflated. Borrowers that have poor credit don't have to settle for subprime mortgage rates anymore, because FHA rates are competitive and there is no penalty for refinancing.
Refinancing Sub-Prime Loans
FHA offers low fixed mortgage rates with subprime refinancing guidelines for borrowers with fico scores as low as 500.
The FHA Secure was replaced by Hope for Homeowners and that has been replaced by the FHA short Refinance and the Home Affordable Refinance.

 

Resource Tools


ARM vs. Fixed Rate Calculator
How does a fixed rate 1st or 2nd mortgage compare to an adjustable rate mortgage or home equity line of credit?

When to Refinance a Home

How to Get a Bad Credit Mortgage Refinance

Mortgage Refinance News

Mortgage Refinance News

There are multiple relief initiatives available for distressed homeowners. Mortgage Help and Refinance Tips

Refinancing saves money by reducing payments but it also provides tax advantages that are not available with credit card interest unless you consolidate in a mortgage. Consolidating Credit Card Debt with a Mortgage Refinance

If you have difficulty documenting your income consider a No Income Mortgage Refinance

No LTV Mortgage Refinancing - Obama signed off on the revamped Home Affordable Refinance Program in March. The goal is for this government refinancing plan to make it more accessible for homeowners to qualify for refinancing at a reduce mortgage rate. To qualify, the existing mortgage lien must be owned or guaranteed by Fannie Mae or Freddie Mac and sold to those two entities on or before May 31, 2009. Get more info on the Home Affordable Refinance Program

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BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
Please be aware that this is not an advertisement for credit as defined by paragraph 226.24 of regulation Z. Nothing on this site contains an offer to make a specific home loan for any purpose with any specific terms. This is a web-site and no loans can be guaranteed as loans and rates are subject to change. Nationwide is affiliated with national lenders and a federally chartered bank located in Maryland licensed to offer home loans in all 50 states. Copyright © 2001-2012 and Beyond, Nationwide Mortgage Loans - BDnationwidemortgage.com is a website and cannot make loans. All rights reserved. Not all loan companies are offering low fico loans. Our network may change requirements on subprime mortgage refinancing.