Being late on the mortgage is something that many home owners never experience. But for those who have had past due payments they know how stressful it can make life. You have probably asked yourself, can i refinance with late payments? Well rest assured because the acknowledge is yes! Read on to find out what programs will allow you to refinance when you have delinquent mortgage payments.
Late Mortgage Refinance Programs
How long ago your late payments occurred will dictate what programs you can use to refinance your home loan. If they were over twelve months ago you can use Fha programs to not only get a low rate but also a garage fixed rate mortgage as well. To qualify for this type of loan you will need to have debt to wage ratios below 45% and your asset taxes must be current.
Your other selection would be a sub prime loan. Sub prime mortgages are ready for borrowers that have late payments up to ninety days late and reputation scores down to 500. The only drawback to these loans is they have high interest rates that often are over 10% and they also do not allow you to borrow much more then 80% of your homes value. Many sub prime loans are adjustable mortgages and if you cannot get your reputation up to a higher level when the Arm begins to adjust you could be in for a major problems. While these loans have gotten a lot of bad press lately they can help you get straightened out but only if used correctly. If you are taking out this type of loan make sure that you opt for the fixed rate option.
When you start to miss mortgage payments and realize you need some sort of help it can seem overwhelming. But take a deep breath and talk to a seasoned mortgage broker who can help get you into the right loan agenda to keep your home from foreclosure and your reputation rating in tact.