Having damaged credit negatively impacts your finances, making it difficult to qualify for mortgage loans at reasonable interest rates. Even if you have bad credit, you can rebuild your credit score over time. Then, you can refinance your mortgage and potentially get a lower rate and save money each month.
If you're a BlueHub SUN client, you're already on a path toward financial health. SUN is not the end of the road but a safe harbor, a steppingstone that allows you the time and resources to repair your credit and rebuild your finances. Our program is designed to be a temporary solution, so we encourage our clients to prepare for the next step—exiting our program by refinancing or selling their property. By diligently improving your credit, many homeowners find themselves in a position to refinance or sell their property and exit the SUN mortgage program. The time it takes can vary based on individual circumstances.
If you have a shared appreciation mortgage (SAM), it is important to remember that appreciation typically grows overtime. That is why we encourage all of our clients to clean up their credit as soon as possible to asses their options. Over 40% of SUN clients have paid off their mortgage—and, where applicable, their SAM—and successfully exited the program.
This blog post will guide you through actionable credit improvement tactics. Credit rebuilding is a key step in helping you refinance into a conventional mortgage with better terms and interest rates.
Even if you're not a SUN client, this blog post will help give you the knowledge to restore your credit to refinance your mortgage. As you apply these strategies, stay persistent, since this process takes time. Following these important steps for the next 12 months can help you restore your credit.