Financing in Oklahoma City>Question Details

Bnd1094, Home Buyer in Bethany, OK

FHA Streamline refi with less than great credit scores - does anyone actually do this?

Asked by Bnd1094, Bethany, OK Mon Sep 10, 2012

We would like to refinance our current FHA mortgage and were advised by a lender that streamline would be best as our house appraised for less than the payoff, but were then told our credit scores of 601-667 between my husband and I were too low for that option and that we wouldn't qualify unless the collection agencies on some medical bills that we have paid in full provided documentation of their intent to have those accounts deleted from our reports. The agencies advised us they don't do that (stated they just get them marked paid/closed, which they have done). We then approached our current mortgage holder and were told that our scores are not high enough to qualify with them, either. My understanding is that FHA does not require a minimum credit score for streamline refi, but lender's have their own criteria.
Does anyone know of a lender that might work with a couple with low credit scores? We haven't missed or been late on a mortgage payment in over 5 years.

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Answers

5
Michael Clutts’ answer
It is possible that an FHA streamline may not be your best option. I would suggest you sit down with a mortgage lender and find out what other options are available to you. Depending on the circumstances a streamline may require you to come out of your pocket for the closing costs and prepaids. There are restrictions on how much can be added to your loan amount. If your payment is affordable my recommended course of action would be to leave the mortgage alone and work on your credit. When your credit is tuned up revisit the refinance options. Good Luck!
0 votes Thank Flag Link Wed Jan 23, 2013
I do FHA Streamlines down to a 640 FICO score. And since a streamline refi only looks at how you've paid your mortgage for the past 12 months, you should be fine even with the lates/collections.

Plus, if you closed on your current FHA mortgage before spring 2009, you may be eligible for a huge discount on the mortgage insurance. Let me know if I can help you. Thanks!

Will Koenig
405.249.5993
1 vote Thank Flag Link Tue Sep 11, 2012
Bnd1094,

Call Teri Cowger w/ Primary Residential Mortgage, Inc. Her number is 405-844-1900 and her email address is TCowger@Primeres.com. She is great and will be able to tell you exactly what you need to accomplish your financing goals.

Let her know, Josh sent you her way.

Hope this helps,

Josh Barnett, Realtor
Web Reference: http://www.1ListingFee.com
0 votes Thank Flag Link Tue Sep 11, 2012
Wells Fargo does them and can work with those credit scores. My wife does not do FHA Streamlines much but she would be happy to refer you to someone in her branch that specializes in that product. Feel free to call her!! Brooke Hukill 405-475-2882 Wells Fargo Home Mortgage, Edmond OK
0 votes Thank Flag Link Mon Sep 10, 2012
You might try Brent Herrmann at First United Bank. 340-2015 He's been very helpful in the past.
Feel free to contact me if you have any questions.

Bridgett Wells
Keller Williams Realty
651-9320
bridgettwells@kw.com
0 votes Thank Flag Link Mon Sep 10, 2012
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