Would like to refinance primary residence to get loan out of ex spouses name. Credit rating is 560, are there lenders willing to work with me?

Loan is a 30 year 5% VA loan that is assumable . Ex was only person on the loan and house was deeded to me in divorce.

Asked by Tracy

2 Answers

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Answered by David Skow, Mortgage BrokerPRO+ in Seattle , WA
Tracy - thanks for the post and question ...you should contact the present lender/ servicer to inquire about options

There is a possibility that lenders will need to classify this transaction as a sale ( versus a refinance ) as it sounds like you have never been in title to the home

I would also encourge you to seek some advice from an attorney familiar with real estate law in your state


Most lenders will require credit scores above 640....soem lenders ./ programs use 580 as min score and there are even some programs that might be OK with a 560 score ...

IF you are aware of what is making the score low ...begin to try to remedy these issues ( paying off account balances/ collections ....checking validity of any derogatory marks on credit report etc....


I hope this helps and all the best

| 01.20.15 @ 22:27
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:17
Answered by Daniel Munoz, Mortgage Broker in Plano, TX
Hi Tracy!

I do have options down to 580 fico score, there are some other restrictions that come into play when we go below 600. Have you had a mortgage professional review your report and tell you if there are any simple steps you may take to gain the points you would need to qualify? Often times there is a very simple fix that can signficantly increase your score.

Let me know if I can help!

Thank you!
Daniel Munoz | 03.27.15 @ 13:44
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:17
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