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Can i streamline refinance my fha mortgage with a credit score under 600?

by JRolph_200_705 from Grand Blanc, Michigan. Oct 11th 2012 Reply


Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

Guidelines will allow for a streamline refinance without a credit report. However, Lenders add overlays. If you contact several local lenders, you may find a lender who will go below 600. Best Of Luck!

Oct 11th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Yes and No.. FHA does not have a minimum credit score requirement for streamline refinance transactions, however FHA does not lend money.. They only insure loans against default.. the lenders who do lend will often times have their own guidelines called overlays... these overlays for most lenders require a minimum credit score of 620-640. There are lenders out there that will refinance borrowers with scores below 600, however their "overlays" will be very strict.. Your best bet it to clean up your credit, pay down your credit cards, and improve your score. With a 640 or above, you will have numerous lenders willing to work with you.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 11th 2012
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Patrick McCarthy (PatrickM)
#23 ranked lender in Ohio - 196 contributions

The first question is what is the middle score of all borrowers on your current loan? How far below 600 is it? I would google 'fha streamline with low scores' and contact them. i do not know of any national lenders doing so, but I know there are some. Good luck and let me know who you find, so I can refer others in a similar situation as you. If you want to try to raise the score quickly, have a lender see what can be changed to raise the score to their minum. 'Rapid Rescore' is available to most lenders through the credit bureaus and can get credit score updates in as little a s week. i just used it on someone that settled a small medicall collection in exchange for a letter indicating they were removing the account. Within 6 days, her score increased from 612 to 656. Nothing else changed. Good luck.

Oct 11th 2012
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Gus Dahlgren (gdahlg_811_422)
#34 ranked lender in Michigan - 48 contributions

You might be able to find a lender somewhere out there, most lenders have a 640 minimum score on the streamline refinance. It might be faster and easier to do a few things and bring your scores up.

Oct 11th 2012
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

Speak with mortgage brokers that cover MI not a bank.

Oct 11th 2012
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 531 contributions

Hey JRolph - An important question no one asked is this: Do you have any Mortgage Late payments in the last 12 months? You are allowed one. Otherwise, you will not qualify for the program. The first place I would call would be your current Loan Servicer. Their number will be on your Mortgage Statement. FHA doesn't have a minimum score requirement, but like many on here have said, most lenders will want to see at least a 620. And by the way, I disagree with the advice of not talking to a bank, going to a broker - trust referrals from friends and family to help you find a great loan officer no matter where they work.

Oct 11th 2012
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