Best Bad Credit Remortgage - Bad Financial Situations Okay Too

I'm sure you're already aware that it is difficult to get a home loan if you have bad credit. But did you know that there's one group of people for whom that might not matter at all? Did you know that if you have bad credit, even very bad credit, and you already have an FHA home loan, you can remortgage or refinance anyway? Easily too.

Assuming you do not want to take out cash. All you have to do is apply for an FHA streamline remortgage or refinance. Bad credit doesn't matter because under this program, you qualify without credit check (or, for that matter, proof of income). It's true. If your new remortgage reduces your monthly principal and interest, that is.

This remortgaging without credit check only works if you're not going to take cash out, so you can't use do it if you want to consolidate your debt. Which is unfortunate.

You don't need proof of income or good credit. So you have less paperwork to provide. In addition, there are 2 ways to do it without out-of pocket expenses, depending on the equity in your home.

1. "No cost" remortgages (refinances). This means, there are no out-of pocket expenses you have to pay.

2. Rolling closing costs into the new mortgage loan.

Here's the difference between the 2, with examples:

1. If you take out a $200,000 home loan with closing costs of $3,000, the lender pays the $3000 at closing, gives you a loan of $200,000 but instead of charging you 6%, charges you 6.2%, or 6.11% (the numbers depend on how greedy a particular lender is and/or how high their overhead is).

2. If you take out a $200,000 home loan with closing costs of $3,000, and the interest rate you qualify for is 6%, the lender will give a mortgage of $203,000 at 6%. This method depends on how much equity you have in your home.

So if you have an FHA mortgage and bad credit, remortgage away, take advantage of lower interest rates.