Bad Credit Refinancing with FHA

Talk to FHA lenders that have the ability to approve bad credit refinancing up to 85% loan to value with relaxed mortgage lending guidelines as well. BD Nationwide can connect you with HUD approved mortgage lenders that provide cash out loans for borrowers with bad credit looking to for refinancing loans with a fixed interest rate. We offer competitive fixed rate mortgages for refinancing adjustable rate loans and consolidating high rate debt. FHA Home Loans for bad credit can help homeowners find competitive fixed rates! Lower interest rates that allow bad credit scores is a rare lending combination for mortgage loans in today's economy. FHA home refinancing is fashionable again with the collapse of the secondary market and the reduced interest rates available now with government mortgages like VA or FHA. Since you only need a 500 fico score, thousands of homeowners will select FHA for bad credit refinancing.

FHA Bad Credit Home Loan Programs for People with Low Credit Scores

Bad Credit Refinancing Possible with FHA Loans

FHA Refinancing with Bad Credit

"Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled," said HUD Secretary Alphonso Jackson. FHA home refinance loans provide a second chance for many American homeowners that have below average credit scores.

It's no secret that FHA refinance rates have stayed below 4% for the last two years, but do not expect that to last for long. The Department of Housing and Urban Development has raised the insurance rate several times on FHA refinancing loans so it makes sense to lock into a loan that save you money now before HUD hikes the premiums again. We extend several term options when FHA refinancing, such as the 15 and 30-year programs. Many homeowners that are looking to minimize the monthly housing expenses have migrated towards the 3/1, 5/1, 7/1 and 10/1 ARMs. These are considered hybrid mortgages because the rate is fixed for a set period before converting to the adjustable period. Today, the most popular FHA refinance loan continues to be the 30-year term that ensures borrowers will have a fixed interest rate for 360 months.

As a result, people are scrambling to get their faltering loans refinanced. When you have bad credit, it can be difficult to get approved. The subprime market has almost vanished, and conventional loans are pretty much out of the question unless you have excellent credit and can meet lenders' increasingly stringent qualification requirements. FHA home loans allow bad credit refinancing up to 96.5% loan to value.

So, what are my options?
If you have low credit scores, you should consider applying for a FHA loan. The Federal Housing Administration (FHA) government loans are one of the last refinancing solutions for borrowers with bad credit because the U.S. Department of Housing and Urban Development (HUD) does not impose any minimum credit score standards for FHA home loans. That’s right! FHA does not have a credit score requirement. Hard to believe, isn't it?

Just think, you can get 85% cash out with FHA. And, it's perfect for refinancing adjustable mortgages or home refinancing of fixed-rate mortgages to get a better interest rate and save money. Remember, the fed has lowered interest rates by quite a bit recently. So, now is the time to take advantage of these government loans that offer fixed mortgage rates and a fixed monthly payment. FHA does allow bad credit refinancing but most cash out transactions will only be approved up to 85% LTV. Learn more about our bad credit FHA home loans today.

Are you facing foreclosure?
HUD may be able to help. They fund free or very low cost housing counseling nationwide. HUD-approved housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender. Go to hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call (800) 569-4287 or TTY (800) 877-8339 to find HUD-approved housing counseling agencies. This article was written by Maria Ny for BD Nationwide

Predatory Mortgage Lending Prevention Bill

Senate Republicans said new mortgage regulations may cut off the flow of credit to subprime borrowers, those with weak credit or high debt. The White House opposed the measure in November, saying it would increase litigation and reduce future homeownership. They have it right, because if you back lenders into a corner, they will pull their money and redirect their capital in other less restrictive areas of the economy.

Legislation making more FHA loans available to subprime borrowers facing foreclosure has strong support. Bush supported FHA mortgages, were approved by the House and Senate so you would think the FHA lending guidelines would have been expanded already. The FHA loan provisions offer more FHA-insured home loans expanding and becoming more available to a broader range of borrowers by reducing the down payment requirements and increasing the mortgage loan limits nationwide. Both President Bush and President Obama requested that congress increase the FHA spending limits and ease the lending guidelines to help increase affordability for homeowners suffering with their adjustable rate mortgages. Congress seems to always wait until the fourth quarter to complete the FHA loan enhancements. The passed the bill to the Senate who finally came together with a FHA mortgage package that was in line with the President as well as Congress. Unfortunately, many legislators in congress are insisting that the complete mortgage menu is included in the FHA mortgage bill. The bill that Congress passed goes further than just the FHA loans with prevention measures to help borrowers avoid predatory mortgage lending and assist bankrupt borrowers maintain ownership of their homes. The House approved this flawed bill and now the much needed FHA lending provisions are stuck in a bill that needs to be reworked. Requiring mortgage lenders to ensure homeowners can pay back their home loan is a great idea, but the proposed oversight of mortgage brokers is very anti-competitive and would cause a mass exodus of brokers that drive the loan products created from consumer demand.

Let's be honest, the subprime crash had very little to do with mortgage brokers. Deflating property values and no secondary market for loan collateralization ignited the fire that destroyed 80% of home equity, subprime and non-conforming loan products. The bottom line that the House made inaccurate assessments about the cause of the subprime mortgage debacle. Therefore there solutions to prevent mortgage loan crashed in the future is extremely flawed and if passed will erode decades of home financing progress.

Please note that Nationwide lenders do not insure FHA refinancing like HUD. We connect you with FHA approved lenders that originate loans that are insured by the Federal Housing Administration. Monthly mortgage insurance is required on FHA refinancing on 30-year terms or 15-year terms with loan to value's that are greater than 90%.

 

Free Finance Guides & Helpful Consumer Reports

Take advantage of our free guides and disclosures that help homeowners refinance in spite of bad credit scores.

Understanding Credit Scores
ARM Rate Mortgage- Guide

Popular FHA Home Loan Queries by State

Take advantage of our FHA expertise and knowledge of government refinance loans Keep in mind that FHA loan limits vary based on state and cost of living indexes. High cost areas in the country typically allow for higher loan limits, so ask your loan officer where county's mortgage loan limitations are set at. 

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Additional Refinancing Pages:
FHA Home Loan | 203K FHA Home Improvement Loans | FHA Streamline Refinance | 100% Refinancing | Bad Credit Refinance | FHA Mortgage Loans for Fair Credit Refinancing | FHA Refinance | 85% Cash Out FHA Refinance Loans | FHA Mortgage Loan State Guidelines |
Mortgage Lender for Bad Credit | FHA Loan Requirements | Bad Credit Mortgage Refinance | Harp Refinance | 30-Year FHA Rates
Other Popular FHA Mortgage Loans:
FHA Refinance | 95% FHA Cash Refinance Loans | 97% FHA Refinance Loans | FHA Mortgage Rate Refinance | FHA Streamline Refinance | Government Mortgage | Bad Credit FHA Loans
BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
This is not an advertisement for credit. 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 does not make FHA loans. Lenders cannot guarantee approvals for people with bad credit. BDNationwideMortgage.com does not have any affiliation with a government entity. Nationwide was affiliated with a federally chartered bank located in Maryland licensed to offer home loans in all 50 states. Copyright © 2001-2012, BDnationwidemortgage.com. All rights reserved. Do not duplicate in any form. Please be aware that not all FHA approved companies offer FHA with bad credit refinancing.