A large number of homeowners across the country who currently have ARM home loans will be unable to refinance those loans for a wide array of reasons. If you happen to be in this situation you should read the rest of the article and see if the tips that are revealed will help you keep your home out of foreclosure.
Reasons Why You May Be Unable To Refinance Your ARM Mortgage
With the recent drop in property values you may find that you are now in a situation where you owe more on your mortgage then the home is worth. Almost all lenders will not refinance a home owner in this situation.
You may have used a stated or no doc mortgage program in order to secure your last mortgage. If you did and are in need of these programs to refi your current loan then you are in a bad spot because these programs are completely gone.
You may also find that your credit scores have dropped below what lenders are currently looking for in order to approve you for a refinance loan. The FHA has even put credit score limitations in place and will not lend to people with a FICO score under 620.
Your Best Option If You Are Unable To Refinance
Your best bet in order to stabilize your payments and bring them back down to manageable levels is to have a loan modification done on your ARM home loan. This is a process where the lender agrees to change the term, rate or payment of your current mortgage in order to keep you in your home and out of foreclosure.
There are also government program available that unfortunately not all home owners will qualify for. So even if you have had no success trying to refi your ARM there is still hope for you.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites