FHA works with borrowers that have lower credit scores. I would start calling around for information.

FHA works with borrowers that have lower credit scores. I would start calling around for information.

FHA works with borrowers that have lower credit scores. I would start calling around for information.

If no equity in the home, may be too risky to re finance for the lenders. If a low credit score, more risk for the lenders. Equity may help but this still may be a challenge. There are so many programs and lender options, youmay find help but with risk comes very high cot to borrowing and interest rates, which also increases your risk not to be able to maintain your mortgage payments if you do obtain an accpetable refinance. If the rates given to you adjust more and are adjustable the increase could be too costly for you and you will be at risk of defaulting. Make sure your loan processor explains with great clarity what type of loan you are eligible for and the risks involved. If it is going to be an adjustable with potential to increase interest rate and cost of borrowing you may not have the income to keep up with the new adjustable built into your new re finance attractive option that meets your current needs. Future could be a risk for your home if you are not properly prepared and disciplined to be prepared for any new adjustments later. Cost of living index and our incomes have not kept up with increases in adjustable interest rate type loans that were give in recent past. This is the reason for so many short sale and foreclousures now. It is very important to understand what you have been approved for to meet your needs and how will you be affected later. You must know how to plan, be prepared, and ot be at risk of default after you make the changes that meet your present need.

Sincerely,

Saundra Allman

With a 520 your only real option is FHA which unless you have a really high interest rate may not make sense. Try to clean up your credit. Why is it 520? Are there any errors?

good afternoon....big equity is really defined as the percent of equity not the amount of equity...or really ltv......loan-to-value....in your case, refinancing probably won't work with your credit score unless you are currently on an fha loan.you could do a rate and term streamlined refi and just pay off what you owe..in order to lower your rate......not all lenders can, but there are some that do not need credit scores to qualify you....if you are not on an fha loan currently.work on credit and try down the road to refinance..best regards.bob mcclure- success mortgage partners- plymouth, michigan.......