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For lower-credit homeowners, refinancing is harder, but not hopeless


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With mortgage interest rates hitting record lows, many homeowners have already refinanced but others are having trouble finding a lender that will approve a new loan.
According to a report from the Urban Institute, between January and June 2020, it became substantially more difficult for homeowners with FICO scores of less than 700 to be approved for a refinance.
In July 2020, 9.49% of refinances went to borrowers with credit scores between 500 and 699, according to Ellie Mae data, compared with 20.13% in July 2019. It’s part of the continued fallout from COVID-19, which has had major impacts on the housing market. ....

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