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We can help homeowners refinance with a credit score as low as 500, depending on the loan type. FHA and VA loans typically allow for lower credit scores, while conventional loans require higher scores.
Refinancing may be a good idea if you want to lower your interest rate, reduce your monthly payments, shorten your loan term, or take cash out from your home’s equity for home improvements, debt consolidation, or other expenses.
Most lenders require at least 20% home equity to qualify for a traditional refinance or HELOC. However, some programs allow refinances with less equity.
Cash-Out Refinance: Replaces your existing mortgage with a new, larger loan, and you receive the difference in cash.
HELOC: A revolving line of credit that lets you borrow against your home’s equity as needed. You only pay interest on what you borrow.
Depending on the loan type, you may be able to borrow up to 80-90% of your home’s value (or more with VA loans).
Most refinances and HELOC approvals take 2 to 4 weeks, but timing can vary based on your lender and documentation requirements.
Typically, lenders will ask for:
✅ Pay stubs (last 30 days)
✅ Tax returns & W-2s (last 2 years)
✅ Mortgage statement & homeowners insurance info
✅ Identification (Driver’s License or Government ID)
If it’s an FHA Streamline Refinance, you may not need income documents since this program is designed to reduce paperwork and make refinancing faster for existing FHA borrowers.
Yes! Even if your credit isn’t perfect, we offer loan programs that work with lower credit scores, especially FHA, VA, and non-QM loans designed for borrowers with unique financial situations.
Closing costs typically range from 2% to 5% of the loan amount. However, some lenders offer no-closing-cost refinances, where fees are rolled into the loan.
A refinance may cause a temporary dip in your credit score due to the credit inquiry, but over time, a lower mortgage payment or better loan terms can improve your credit score.
Yes! If you’re self-employed, you can refinance with bank statement loans or other non-traditional income documentation programs instead of standard W-2s.
If home values drop, you may owe more than your home is worth, limiting your ability to sell or refinance. However, lenders usually provide guidance on safe borrowing limits to prevent negative equity.
If you own an investment property and want to refinance, you typically have two main options:
Conventional Loan Refinance: Requires income verification, tax returns, and a good credit score (usually 640+). Lenders will look at your debt-to-income (DTI) ratio, meaning your personal income must support the loan.
DSCR (Debt Service Coverage Ratio) Loan: This option allows investors to qualify without personal income verification. Instead, the lender looks at the rental income from the property. If the rental income covers the mortgage payment, you may qualify—making it a great choice for investors with multiple properties.
Key Differences:
✅ Conventional loans may offer lower interest rates but require personal income documentation.
✅ DSCR loans allow for easier qualification based on property cash flow and are ideal for investors scaling their portfolio.
It’s easy! Call us today at 800-495-9811 for a free consultation. Our experts will review your options and help you secure the best rates and terms.
Susie G.
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