Another option is freddie mac . Du and au systems are typically driven by payment history and liquid assets (typically 6+ months is good).

Homeowners who are currently in adjustable rate mortgages can benefit tremendously by refinancing their arm mortgage to a fixed rate.

Hard money lenders look at the value of the property and the loan amount. With loan to value ratios of 70% or less, hard money lenders can be a viable option to refinance as they do not look at credit for qualification.

Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce ones periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

If you are in need of refinancing and your credit score is under 500 then you have very limited options. The vast majority of home owners who end up refinancing with a credit score under 500 use hard money lenders. Hard money lenders are equity driven and pay no attention to a credit score under 500 when refinancing.

These types of loans can give you the chance to clean up your credit and give you the leverage needed to avoid bankruptcy. They also provide the opportunity to pay off back child support, late payments, and supply the cash needed for home improvements.

the loans are usually 2-3 year adjustable rate mortgage to keep the payments at a reasonable amount. The rationale behind this is to refinance you in 2-3 years to get you into a better situation.

While buying a home when you have bad or below average credit scores may not give you the lowest rates available, it can still be a better alternative than throwing your money away on rent. Here are a few tips to help lower your monthly mortgage payment. * Buy a less expensive home (instead of that 200k home, try to find one in the 150k range) * consider an adjustable rate mortgage instead of a fixed rate mortgage until you get your credit scores back on track * look into a 40 or 50 year mortgage versus a traditional 30 year mortgage * consider the possibility of having a co-signor

In many cases, lenders will waive the pre pay penalty if the borrower will accept a slightly higher interest rate.

You can still buy a house with bad credit if you can come up with an acceptable down payment or qualify for one of the many fannie mae’s, freddie mac or government programs.