If you have a low fico score and are trying to refinance you have a few options. If your mortgage payment history is good you may be able to get a FHA refinance even with a low fico. However if you have many late credit accounts or accounts in charge off FHA may not qualify you for a low fico refinance.
If you have a low fico score, you may be eligible for a Fannie Mae Expanded Approval Loan. Your loan can be underwritten by an automated underwriting system which allows for compensating factors such as low Loan to Values, Good Asset Reserves, and a Strong Debt to Income Ratios. These compensating factors can allow you to be approved despite a low fico score.
While low fico score refinances are very limited these days due to tightened lending guidelines. However, there still are options. You may be able to qualify not only with FHA or a Fannie Mae Expanded Approval program but you may also be able to qualify with a Subprime Lender or with a Hard Money Lender. If you are looking to refinance and you have a low fico score your best bet would be to contact a mortgage broker as many mortgage brokers have access to many/all of the above different types of lenders.
If you have a low FICO but your payment history has been clean in the last 12 months without any late payments, you might qualify for an FHA loan.
Low Fico Refinance Scores are a reflection of the probability that a borrower with a credit score will default. Lenders view borrowers with low credit scores with a skeptical eye as they are considered to be higher risks.
If you have low fico or bad credit due to not having enough trade lines or small credit history, there are some lenders who can accept alternative trade lines such as utility bills or canceled rent checks.
If you have a low fico and are trying to refinance you may want to consider a reverse mortgage. If you are over age 62 and have equity in your home a reverse mortgage can be a solution for low fico borrowers.