I'd like to refinance my condo. Originally bought for 125k, balance is now 114,899. I only have a 626 credit score. What are my options?

Asked by mdab86, Bastrop, TX Tue May 28, 2013

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George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Tue May 28, 2013
With a middle credit score of 626, I would recommend raising your scores under the direction of an EXPERIENCED Loan Officer as a Conventional Loan will give you many more options. If that is not an option for you, the only program that you would qualify for is an FHA but the Condo Project would need to approved. You can check at the website below and if the Condo Project is not approved, there is way to get it approved but it will take some work. Hope this helps. Let me know if you need any assistance as I live and am licensed in Texas.

Best of Luck!

https://entp.hud.gov/idapp/html/condlook.cfm
Web Reference:  http://www.AFN-Loans.com
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Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Tue May 28, 2013
Your best option is to get the credit score up higher, because you are going to pay a lot more for having credit scores that low.

You should check to see if you are eligible for a HARP refinance http://(www.makinghomeaffordable.gov). If so, you can get a decent rate with limited or no PMI, depending on your current loan.

If you are not eligible then you can look at either conventional financing or FHA. FHA will be a lower interest rate, but you will probably need a 640 credit score and the PMI is very high. If you go conventional, then you'd probably be looking at paying points AND having an interest rate in the 4.5%-5% range.

In my opinion you would be best served by working on the credit first and then applying for a refinance. It could save you thousands of dollars in charges.

If you would like to discuss things in further detail and get some pointers then please feel free to shoot me an email or give me a call at 866-936-5363 ext 278

Tony
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