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Don't despair if you are not at a Tier 1 credit level. A skilled refinance mortgage professional with access to an extensive database of mortgage lenders can often find very competitive refinance rates and loan terms for people with less than perfect credit. In fact, those with 
Upper Tier 2: 680 to 719 FICO Credit Score
The "Upper Tier 2" score range is very close to Tier 1, except that qualifying refinance interest rates will be slightly higher and the Loan-to-Value (LTV) amount to be refinanced may be capped at 90% of home value for some refinance programs.
Upper Tier 2
Tier 2: 620 to 679 FICO Credit Score
Those with credit scores in the "Tier 2" range will qualify for competitive refinance interest rates, but most likely will be slightly higher than Upper Tier 2 rates. Also, individuals with Tier 2 scores may be capped at 90% Loan-to-Value (LTV) amount to be refinanced .
Tier 2
Tier 3: 580 to 619 FICO Credit Score
The Refinance ToolBox can help those with poor credit scores, As Low as a 620 FICO Score.
Due to continued tightening of lender underwriting guidelines, the Refinance ToolBox does not currently have any home refinance or home puchase loan program options available for individuals with credit scores Below a 620 Mid FICO.
Individuals with credit scores in the "Tier 3" range will most likely not qualify for a conventional refinance and may also have difficulty qualifying for an FHA loan. Technically, FHA loans are not really score driven, but many of the lenders that underwrite and fund FHA loans have raised the minimum credit score requirement to a 620 mid fico.
Those in the Tier 3 range of credit scores may benefit most in the long run by repairing their own credit, or by using a credit restoration company to help raise their credit score into the Tier 2 range and above.
Tier 3
You can check with a credible credit repair company to help boost your score up, while eliminating derogatory items from your credit report. This will not only help for your mortgage refinance approval, but also for all other forms of credit you may need in the future.
Tier 4: 500 to 579 FICO Credit Score
Due to continued tightening of lender underwriting guidelines, the Refinance ToolBox does not currently have any home refinance or home puchase loan program options available for individuals with credit scores Below a 620 Mid FICO.
Those in the "Tier 4" credit score range will have less refinance options than the tiers listed above. Interest rates will be significantly higher and LTV can be capped at 80% of the home value or lower. Borrowers in the Tier 4 range will not qualify for conventional financing or FHA refinance loans in most instances.
As with Tier 3, individuals may benefit most in the long run by repairing their own credit, or by using a credit restoration company to aid in a credit score increase into the Tier 2 and above range, to take advantage of much better qualifying refinance rates and wider program options.
Tier 4
Tier 5: Below 500 FICO Credit Score
Due to continued tightening of lender underwriting guidelines, the Refinance ToolBox does not currently have any home refinance or home puchase loan program options available for individuals with credit scores Below a 620 Mid FICO.
It can be very difficult to refinance with a middle FICO credit score that is below 500. Generally, you will need to have significant equity in your home in order to qualify. Also, the associated refinance interest rates can be very high. One option for people in this situation is to contact a credit restoration company. Often times, credit scores can be raised in a relative short period of time to allow for eligibility in better refinance programs.
If you have a credit score that is below a 620 and/or multiple derogatory items on your credit report, checking on credit repair with a reputable credit repair company could really be a wise choice.
Back to Refinance Credit Basics
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