you and has your documentation on file can streamline the loan process.
A POOR-CREDIT OPTION
If you want to refinance your loan but you have poor credit, one option might be a “portfolio loan.” Unlike more familiar loans that are sold to mortgage finance entities, such as Fannie Mae or Freddie Mac, these loans are offered by private lenders who set their own requirements for terms and who handle their own underwriting. Their requirements are sometimes more lenient regarding your current employment and income level, credit score, payment history, liquid assets, and past bankruptcy. Unfortunately, their interest rates also vary. Regardless of the type of loan for which you apply, be prepared to provide the lender information regarding the condition of your property, your home’s estimated value, and the balance remaining on your current mortgage. For a refinancing package, the lender will consider your income, your credit score, and the loan-to-value ratio of your property. You can get help through the Making Home Affordable (MHA) program, which provides free counselors for advice and assistance with keeping you in your home or getting out safely. Visit the MHA website to read about the options and what you’ll need to prepare. MHA has a hotline you can call anytime, (888) 995-HOPE [(888) 995-4673]; TTY users should call (877) 304-9709. You can also find a counselor in your area.
Here are some other useful resources and tips for you to consider:
• Your state’s housing agency might have a foreclosure avoidance program. 45
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