Looking for answers to your questions about refinancing? We have you covered. Learn more about loan terms, loan applications, documentation needed, no score loans, and much more.
Q: What does it mean to refinance a mortgage?A: Refinancing is when you pay off an existing home loan and replace it with a new one.
Q: What are the benefits of refinancing a home?A: Most people refinance their mortgage to save money. That may look different depending on your situation, but most people want to remove Private Mortgage Insurance (PMI), reduce their loan term, or switch their loan type.
Q: Can I get a free mortgage report to help figure out if it is worth it to refinance?A: Yes, you can! This is part of our Churchill Checkup. Visit the page for more information on how to get your free report and schedule a quick call with one of our expert Home Loan Specialists to discuss your refinancing goals.
Q: Where Can I find more information about refinancing my home?A: You can download our free Refinancing Starter Kit here. This guide will give you 5 simple steps to refinance your home and paying off your home loan.
Q: How do you get a no score loan?A: A lot of weight is put on a FICO® Score because it’s an easy way to do a quick risk assessment. If you don’t have a FICO® Score it can make qualifying for a mortgage a little more difficult, but not impossible. Many lenders do not offer no credit score loans.
Q: Does Churchill Mortgage offer no score (or zero score) home loans?A: Yes, Churchill Mortgage accommodates this type of loan on a regular basis with expertise. We work hard to make sure you are not penalized for non-traditional credit. Our Home Loan Specialists are professionally trained to help you get a smarter mortgage that can be paid-off quickly, so you can return to a debt-free lifestyle as soon as possible.
Q: What do I need to get qualified if I have no credit score?A: Typically, you must have four alternative credit tradelines with the most recent consecutive 12-month payment history from the creditor stating each were paid on time. Examples of alternative credit can be: cell phone bills, utility bills, insurance that’s paid monthly or quarterly (but not payroll deducted), school tuition, child care, or rent payments. If you are living rent free, a conventional loan without a 12-month rental payment history will require 12 months of assets to cover your principal and interest (P&I), taxes, property, flood, and mortgage insurance premiums. Click here to download our How to Buy a Home with Zero
Q: : What type of no score loan has the best chance of approval?A: We’ve found that a 15-year fixed rate loan with a 20 percent down payment gives you the best chance for approval. This type of loan eliminates the need for private mortgage insurance (PMI) and presents a lower risk to the loan servicer.
Q: How do I prepare for the underwriting process for a no score loan?A: With no credit score available, an underwriter will go through your documentation to establish a history of payments for alternative credit. Don’t look for quick answers during this process. It can take about three times longer than a normal borrower file and sometimes additional documentation will be requested. Give your underwriter at least 60 days to look into the loan risks before issuing approval. Your Home Loan Specialist is always available to give a more detailed timeline for the underwriting process and to assist writing a contract closing date.
Q: How do I protect myself during the home loan process while I’m waiting for a no score loan approval?
A: Don’t sign any sales contracts for a home purchase without protective contingencies to cover you in the contract. You’ll also want to make the sale contingent upon being fully approved, otherwise all earnest money can be returned to the buyer. Stay away from any 100 percent commitments until you know your loan has been “cleared to close” and there aren’t any other conditions needed.
Q: What loan options do I have with a no score mortgage?A: Dave Ramsey recommends a 15-year, fixed-rate conventional loan. A conventional loan is not secured by a government agency, making it a little trickier to qualify if you don’t have a credit score. Requirements for a conventional loan with no credit score means you need at least 12 months of flawless payment history on eligible monthly bills, and you may also need to take a homeownership education class. If you do qualify for a conventional loan the benefits far outweigh the effort needed to qualify! We do have other no score loan options ranging including but not limited to FHA and VA.
Q: What is the history and relationship between Churchill Mortgage and Ramsey Solutions?A: Churchill Mortgage and Dave Ramsey are closely aligned through shared principles and core values. The two teams work together to help Americans buy homes the smart way and ultimately become debt-free. This is what we call the real American Dream. Churchill is the only lender that does that, and therefore, the only lender the Dave Ramsey talks about on his show.