Is Refinancing With A Low Credit Score Possible?

We know what you’re going through. When you started looking into home refinancing, it seemed like the answer you’d been looking for: a way to get much-needed cash, lower your interest rate, or decrease your monthly mortgage payments. But after digging deeper, you found that it was too good to be true.

Strict eligibility requirements make it difficult for millions of people to access the money they need. Refinancing with a low credit score is next to impossible, but many homeowners don’t realize this until they’ve spent lots of time and money applying for loans, only to be rejected, frustrated, and end up with an even worse  credit score after multiple loan applications.

However, just because you’re ineligible for refinancing doesn’t mean you’re out of options. Here, we’ll reveal the groundbreaking financing option that’s giving homeowners like you the ability to tap into their home’s equity without the hassle and requirements of traditional lending institutions. 

What Lenders Assess When You Apply for Refinancing

When you apply for refinancing, lenders examine a myriad of factors when determining your eligibility. If your finances are less than perfect, it can be hard to secure refinancing options. Some of the most important factors that impact your eligibility include: 

Your Credit Score

One of the main factors these lenders assess is your credit score. If you don’t have a ‘good’ to ‘excellent’ credit score, your options for refinancing are immediately limited. If you are able to find a lender who is willing to offer your refinancing options, it’s likely going to come with a high interest rate and unfavorable repayment terms.

Your Debts

Your existing debts will also play a factor in what refinancing options are available to you, but your debt-to-income ratio is also important. For example, if you have a lot of debt, but also have a high income, lenders will be less worried about giving your refinancing options.

However, if your debts are from things like medical expenses, there’s a good chance that you have a high level of debt compared to your income. In some cases, your health struggles may have even forced you to leave your work, reducing your income even further. In cases like that, lenders are unlikely to extend refinancing options to you.

Your Payment History

Your credit report records how you’ve managed payments on things like your mortgage, credit cards, and any other lines of credit. If you’ve faced an unexpected life event such as an illness, you may have missed mortgage or loan payments, which makes you unfavorable in the eyes of lenders.

If you’re struggling to make payments, you may be able to get refinancing that’s secured against your home. However, if you’re unable to make the payments, you could lose your home—and that’s a big risk to expose yourself and your family to.

Now, you might be thinking to yourself, ‘I have high debts. That makes it hard to submit payments on time, which has lowered my credit score. I still need the funds from financing, but I can’t afford to take a risk that would end with my family losing our home. What options do I have?’

It can seem like there aren’t options open to you. If you’re looking at options from traditional lenders, that might even be the reality. However, alternatives to those traditional options exist, so let’s tell you about one of the best. 

SKYDAN’s Home Equity Program Makes Refinancing With Low Credit Possible

SKYDAN’s sell-buyback program allows you to stay in your home and buy it back once you’re on your feet again. Here’s how it works:

1. SKYDAN buys your house—but this isn’t foreclosure. You and your family stay in your home.
2. Together, we agree upon an amount to lease the house back, but no rent is due for the first two years!
3. After those two years, you can either purchase your home back from us at the original purchase price, or you can sell the property and receive all the additional equity.

How is Our Sell-Buyback Program Different Than Working With a Bank?

First off, SKYDAN isn’t a bank. And we’re not a mortgage company or a lender. What are we? SKYDAN is a real estate investment company. Unlike banks, we do the best when you do the best. Let’s take a look at the key differences between our sell-buyback program, and refinancing options from traditional lenders: 

The only thing that matters for our home equity solution is whether you have equity in your home—that’s it. Low credit, high debt—it doesn’t make a difference. As long as you have equity in your home, you can qualify for SKYDAN’s home equity solution.

Ready to Take the Next Steps? See if You Qualify Today

If you’re facing chapter 13 bankruptcy, foreclosure, or are simply struggling to keep up with your payments each month, your bank probably won’t be willing to work with you. With SKYDAN, you could have access to funds within 30 days, regardless of your debt or credit score. To learn more about our sell-buyback program and see if you qualify, get started today.