| Refinancing can be tough if you have bad credit, but if | | | | to do a streamlined refinance through FHA and get a |
| you've got some equity, it might be a good idea to try | | | | better interest rate with minimal processing. You may |
| to qualify for bad credit mortgage refinancing. | | | | also be able to refinance through FHA even if you |
| Contact your lender directly. Most lenders have | | | | have a conventional mortgage. Often this will improve |
| specialists who can address your situation and give | | | | the rate and terms of your mortgage. |
| you options. Reputable lenders really don't want to | | | | If your current loan amount falls within FHA's loan limits |
| take possession of your house if they can help it. | | | | for your area, (these are determined by local housing |
| Investigate loan modification through the federal | | | | prices,) and if you have enough equity, you can also |
| government's Making Home Affordable program. If | | | | choose a cash-out refinance of up to 85% of your |
| your loan principal is under $729,750, you may qualify | | | | home's value. This type basically pays you your equity |
| as long as your loan originated before January 1, 2009, | | | | in cash. This is often an option for those trying to put a |
| your monthly mortgage payment (not including taxes | | | | child through college or for people who have huge |
| and insurance) is greater than 31% of your pre-tax | | | | medical expenses. Don't use this type of loan for |
| monthly income, and you can document financial | | | | luxuries. |
| hardship. | | | | A growing number of homeowners have paid hefty |
| You may also be able to refinance through Making | | | | refinance fees to unscrupulous mortgage and loan |
| Home Affordable if your mortgage is owned or | | | | modification companies. They generally promise to |
| guaranteed by Fannie Mae or Freddie Mac. Your | | | | work with your current lender to lower your payments, |
| mortgage payments have to be current to qualify - no | | | | but then take your money and run. That's the last thing |
| payments later than 30 days. | | | | you need if you're already having trouble making your |
| If you have an FHA mortgage, you may also be able | | | | mortgage payment. |