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Can I refinance with a 655 credit score?

Profile picture for SuzyQ7000
My sons have owned a house together for 5 years and one of them is getting married and the other needs to get the mortgage in his name only. He has had a good job for 10 yrs. and a 655 credit score and no other debts except a car payment and a personal loan-within the normal debt range.

Their home has decreased in value by $20,000 which is what their down payment and equity would be. He will be able to put 5% down toward his new mortgage.

The credit union has told him he can't get a mortgage because he can't get PMI.

What are his other options?
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December 09 2011 - Bloomington
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Answers (5)

Profile picture for 203K Specialist

Geof,

How about answer the op's question rather than spamming them to call you.  90% of the Loan officers that post on the boards know as much about available loan programs as you do...you will not be letting out any trade secrets!

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December 11 2011
Profile picture for Georgia Loans
SuzyQ, I believe you are saying the amount owed and the value are the same, plus your son can pay the loan down 5% in order to have equity to refinance. His score of 655 is fine for an FHA loan and he only needs 2.25% equity. Maybe the Credit Union he spoke with does not originate FHA loans.  
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December 10 2011
Profile picture for SuzyQ7000
Please delete this question.
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December 10 2011
Profile picture for Sharon Lewis
The credit union has already said no. Have you considered 'gifting' some money to help them refi?
If you go up to the Professionals tab up top, you can pull down the name of lenders in your area. I would suggest you talk with several. . Don't put any personal information here on 'public' boards please. Best of luck to you.
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December 10 2011
Profile picture for GMerino

Thank you, for the question. 
I have a question for you.  What type of loan does the current mortgage have?   

There are options for your son as long as he qualifies. 

I think that the best thing to do is to reach out to me if you would like to go over this scenario further, just click the profile.

Thank you,

Geofrey M Merino
Lending in all 50 states 

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December 09 2011
 

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