Yes. There are a few ways to do this. One way is with an FHA mortgage. These loans are insured by the federal government. Your credit does not have to be spotless. Even with bankruptcy or collection activity, you can still qualify.
If you already have an FHA loan and want to refinance it, look at an FHA streamline refinance, which is a mortgage product only for current FHA borrowers. An FHA streamline refinance does not require an appraisal. So you can qualify for this loan even if you have no equity or your home is underwater. Also, an FHA streamline refinance is does not require job, income or credit verification.
And finally, there may be conventional mortgages available for refinancing options. However, with a poor credit history, expect to pay a higher rate of interest. About 1.6 percentage points more than with a good credit score.
What Is The Home Affordable Refinance Program?
HARP would make sense as a refinancing alternative if you are “under water” on your current mortgage. It is also available to borrowers with poor credit. However, you MUST be current and have a good payment history for the past 12 months.