Sub-Prime Mortgage Refinancing

Locate refinance lenders offering alternative financing for borrowers seeking subprime loans but have poor credit scores. Our team can help you find companies that provide sub-prime mortgage refinance programs for borrowers with less than perfect credit seeking cash out loans and fixed rate mortgages for debt consolidation and reestablishing credit. BD Nationwide announced that several subprime mortgage lenders were now offering 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 sub-prime refinancing is not easy. For nearly two decades we have been extending credit with our popular refinance mortgages for subprime borrowers.

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

We connect homeowners with lending programs 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 mortgage with no income documentation features that make the loan process quick and easy.

Subprime Mortgage

Even though many of the poor credit lenders folded their shops, we continue to provide subprime refinance mortgage plans for borrowers across the United States. The great feature about out these bad credit loans is that the rates are still pretty low, and the credit guidelines are considered aggressive. We have solid relationships with subprime lenders, so you know you're shopping for mortgages from companies that have great reputations and proven track records.

How to Refinance with Poor Credit with a Subprime Mortgage Loan

Do you have a mortgage lien? Do you suffer from low credit score that's deteriorated since you initially took out your loan? You might feel your options are limited; however, securing a refinance mortgage with poor credit is possible in 2018 if you have the right credentials and are speaking with the right lenders.

Home refinancing with poor credit scores may take slightly longer than it would with an optimal score. Even so, though, lenders understand that in today's financial climate, nobody is perfect. There are a number of ways you can approach your refinance goals.

Subprime mortgage

HELOCs and 2nd 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 find a hard money financing. Unfortunately, in most cases the equity loan market needs a 600 fico unless you have a significant amount of equity available in your home. Yes, there are subprime lenders that offer subordinate loan programs for people with damages credit, but in most instances you will need more equity to qualify for the 2nd mortgage for low scores or home equity loan and bad credit. If you refinance your existing first mortgage lien you will have a better chance to qualify for a subprime mortgage program that still offers competitive pricing.

If you have some equity, talk to some hard-money lenders before making a decision on home refinancing. 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 Refinancing for Low Credit

Stated Income Home Refinancing

Sub-Prime 2nd Mortgages

Combine 1st and 2nd Mortgages

Consolidate High Rate Debts

FHA Mortgage for Low Credit: 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 serious problems on mortgages for people with poor credit and 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 subprime loan to pay off tax liens, credit card debt and other debt to avoid bankruptcy. Consider a Bad credit equity line as well.

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 interest and adjustable-rate loans 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.

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.


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?

How to Get a Bad Credit Mortgage Refinance

Mortgage Refinance News

Mortgage Refinance News

There are multiple relief initiatives available for distressed homeowners. 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.

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

Find Home Purchase Loans with No Credit Score - Even with limited credit, subprime lenders continue to extend loans to high-risk borrowers.

New Second Mortgage Programs Announced!

Home Loans for People with Low Credit Score
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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. 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. BD Nationwide was affiliated with national lenders and a federally chartered bank located in Maryland licensed to offer home loans in all 50 states. Copyright © 2001-Present and Beyond, is a website and cannot guarantee subprime refinance loans. All rights reserved.

Not all loan companies are offering low fico loans. Our network may change requirements on subprime mortgage refinancing.