With credit scores under 600, refinance mortgages can help in situations where one maybe overextended on their credit card debt. Using home equity to restructure revolving debt can improve your cash flow and bring down your credit balances to opportune levels that can improve your scores.

One common cause for a credit score under 600 is high credit card balances in relation to credit limits. Thre are many loan programs which can benefit a consumer by wiping away this consumer debt. FHA loans, for one, allow a consumer to do a debt consolidation loan up to 95% of their home's value, depending on the FHA loan limit in their County.

Check with your mortgage professional to see if your loan can be approved through an automated underwriting system. Many times, credit scores under 600 will get an approval due to compensating factors such as strong assets reserves, a low loan to value, or low debt-to-income ratio.

While 100% financing was very common with credit scores under 600, now this is very uncommon. Many lenders now require a 620 score or above to obtain 100% financing. However, there are programs out there such as the Fannie Mae Expanded Approvals, Flex Programs, and Home Possible Programs that will provide 97-100 percent financing with credit scores under 600, with compensating factors.

If your credit score is under 600 there are still several loans available for you. If you improve your credit score you will have even more loan opportunities at a more attractive interest rate.