Years ago we got ‘swindled’ out of alot of money. credit went down the toilet. we’re on the road to recovery, credit scores as high as 580, as low as 520. We’ve got several rental properties, when a fair deal of equity in each. The loans currently on them have adjustable rates that up to like 12%. We’ve had NO 30 days late on any of our mortgages in the last 12 months, but 12% is killing us. Is there any companies out there that would do a no doc/stated refinance (no cash out) on investment properties, with those credit scores? The only docs we could provide are my wife’s w2’s, which show $35k. and since most pay in cash, I’m not sure the rent would really be trackable?
In today’s enviroment, investors with scores in low 500s will have difficulty refinancing—you’ll have to sell the property to extract the equity…
From what I’ve seen and hear in the Mortgage industry is that you CAN refi just for your rate and term, even with a low credit score.
I would start with talking to the LOCAL brokers and finding someone to work with you. Also talk to the Lenders with the 12% rate’s and let them know what is happening.
They should help you.
But don’t base your next move from this site only. Talk to as many people as you can about it. ONLY let the best person pull your credit.
Or just get a copy of your current credit reports and take them with you or fax them in.
You can find the financing your looking for, just keep searching!
If you are aware of a lender that can accomodate the OP, why don’t you tell him the name(s) and save him the time, effort and aggravation?
If you can go FULL DOC (and have a mid score of 560), there is a possibility to get a loan at 70%.
Going stated, you would need to have a mid FICO of 600 to get a loan at 65%.
Program allows the investor to have a max. of 5 properties (if going FULL DOC) and 2 if going STATED.
Can he get a HELOC?
Not that I’m aware of…
You are correct EZ…definitely won’t find a 2nd mortgage with that kind of credit score.
If I knew the lender I would have sent an email to him.
I do know that the FHA does fund people with problem credit for purchases. I have seen FHA approvals for mid FICOs at 530.
I would recommend a local credit union as a great place to go for a rate and term refinance. Remember BryanC512 doors open for those that try.
FHA is for owner occupied properties only.
There are companies that can help increase your credit, and give you more options.