I have $10,000 in credit card debt and $42,000 on a second on my home that is interest only. I've had this second since 2008.
My credit scores are poor.
Can you help us?
Asked by Rudy M.
Answered 1 year ago
Good morning. In order to refinance your 1st mortgage, 2nd mortgage, and any credit card debt you must have equity in the home, and your credit score must be high enough. There are other components to the qualification, however these are the two biggest points of concern.
1. Equity: Your property must have the necessary equity. For an FHA loan you would need at least 15% equity, for a conventional you need at least 20% equity, and if you are VA eligible, depending upon your credit score you can have as little as 0%-10% equity.
2. Credit score: For a conventional loan, you need to have at least a 620 middle credit score. FHA and VA technically does not have a minimum credit score to qualify, however most lenders will require at least a 580 or maybe higher. Cardinal Financial requires a 600 minimum score for any government loan.
Hope that helps.