Bad Credit/Have a FHA 30 Year Mortgage/Can I Refinance?

[crablegs]

I wondering if anyone can throw me a bone here. In March it will be 3 years into a 30 year FHA mortgage, I got it at 5.5%. My credit has taken a hit and I've been late on mortgage payments, the most being 30 days. Understandably so, I know banks probably won't refinance if my credit score is below 600. I was reading some stuff on the HUd site and saw something I think streamline or steamline loan.

I'm just trying to get a lower interest rate. Is there anything out there that I could look into?

Thanks

[IOBA]

Is your rate fixed?

Can you afford your current payment?

It probably is not worth refinancing, but that is something you will need to decide on your own.  With the lates and hiccups, you probably won't qualify for the lower, super great interest rates.

I am not sure how the streamline works.

[crablegs]

I was thinking in regards to another FHA, but at a lower rate. It should be about 4.5% now. I can afford the monthly payment.

[cdtotten]

You can do an FHA streamline refi and be approved. If you were only late 1 time, for 30 days, then you would still qualify:

b)For mortgages with a 12 month payment history or greater, the borrower must have:

i)Experienced no more than one 30 day late payment in the preceding 12 months, AND
ii)Made all mortgage payments within the month due for the three months prior to the date of loan application.

Current rates for FHA loans are between 3.875% and 4.00%. Keep in mind that MIP has changed in the past couple years. The upfront premium isn't as high as when you originally closed, but the monthly premium is more than double. This will result in limited savings, even with the new mortgage payment. You will have to look at the closing costs and determine if the refi makes sense to you.

[crablegs]

If I went with the streamline who would be obligated to approve this and hold the mortgage? I'm with wells fargo now. Because my credit score has dropped below 600 I'm not sure who would want it or are they obligated if I meet the criteria?

[gpeach]

When we refinanced our VA loan I saw a clause that if we were ever over 30 days late then the VA had to approve the refinance before the bank could approve.  FHA may have a clause like that and you can get it refinanced after all. Likely your best and maybe only shot is Wells Fargo at this point. We called Wells Fargo for a quote. They were very helpful and answered many questions. Hope all works out.