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.
Answers | 2
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
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!