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Is it possible to consolidate 2 mortgages into 1 with bad credit?

We currently have 2 mortgages on our property now and would like to combine them into 1. Our credit is poor, but we are trying to fix it. I have just found out that neither of our loans are backed by Fannie Mae or Freddie Mac - so that throws a wrench in some options.. Our first mortgage rate is at 7.23% with $103,000 owed and our second mortgage rate is 12.99% with about $25,000 owed. The Auditor's website is showing the current value at $122,000. Any help you can offer would be greatly appreciated. by jennif_741_714 from Columbus, Ohio. Apr 8th 2013 Reply


Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

Your tax value and appraised value could be wildly different. If your score is over 580 you could go with an FHA loan and borrow 97.75% of your value (96.5% is the max for purchases) as long as there aren't any late mortgage payments in the last 12 months. Other factors may affect your ability to qualify so I recommend working with a LOCAL mortgage banker or broker who can determine what can be done. Click on the 'find a lender' tab above and good luck to you!

Apr 8th 2013
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Kofi Akpabla (KofiAkpabla)
#22 ranked lender in Connecticut - 37 contributions

How poor is your credit? What is the score?

Apr 8th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

based on your numbers you are at 100% equity or higher, FHA would go to 96.5% consolidating both loans unfortunetly that is the max.

Apr 8th 2013
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Our credit scores are between 550 and 600

Apr 8th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#78 ranked lender in Florida - 2,240 contributions

If your mortgages are not owned by Fannie or Freddie and your value is 122,000 then you cannot combine them. That being said depending on what your scores are you can at least refinance your first. We can get you a refinance with at least a 580 middle score.

Apr 8th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

550-600 qualifies you for FHA rate and term refinance to 97.75% (correction as I put 96.5% on prior responce) You can always come to closing with the shortage. Most FHA lenders require 600+ scores, we are only in NJ but I'm sure you can find a broker on here that can do Ohio for you with the lower scores.

Apr 8th 2013
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Tim Bradford (Tim Bradford)
#7 ranked lender in Ohio - 145 contributions

Jennif, As I read your question, it would appear that FHA might be your only options. The Auditors value is merely a number that is the basis of your taxes. The real questoin is what would the home appraise for if you applied for a loan. Also, how how POOR your credit is because even with FHA you need minimum credit scores. Another option would be is to check with your current lender to see if a Mortgage Modification is possible. Let them know that you would like to keep the home and continue making the payments. Ask if they might lower the rate for a few years while you work on rebuilding your credit. After that hopefully, home values will improve and you would have more options. The only way you will know is to ask.

Apr 8th 2013
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Kofi Akpabla (KofiAkpabla)
#22 ranked lender in Connecticut - 37 contributions

If you have not taken out any draws from your Home Equity Line of Credit for the past 6 months, you can refinance up to 97.75% combining 2 loans. You need a 620 credit score. I can give you a free credit repair consultation and let you know what you would need to do to get your scores up to 620. Feel free to email me at kakpabla@warshawcapital.com

Apr 8th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

i am sorry i can not help

Apr 8th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Very difficult

Apr 8th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

You need to actually apply with a Lender411 loan officer.

Apr 8th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

hard situation

Apr 8th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Very difficult.

Apr 8th 2013
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Christina Hayes (CreditRepairExpert)
#8 ranked lender in Tennessee - 68 contributions

Hello, as the others mentioned you wouldn't like your interest rate.Where did you get your credit scores from? Online sites like Credit Karma & Credit Sesame, don't accurately reflect your credit scores. In other words your scores most probably will differ on an actual mortgage credit report. I offer Credit Restoration services. Please look at my profile for more information. Thank you;

Oct 22nd 2015
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