Qualifying for a Mortgage Refinance Loan
ByThe federal government continues to make efforts to ease the credit markets an open mortgage lending. Whether it’s a mortgage refinance or a home-equity loan, getting a for a home loan has been nearly impossible to qualify for in 2008. The lending guidelines have tightened significantly this year and your credit score and income documentation have never been more important. Stated income loans have nearly vanished as most borrowers are pursuing FHA home loans and HUD requires full income documentation with pay stubs, W2’s and full tax returns if you are self-employed. Jumbo mortgage loans require a bigger down-payment when purchasing or more home equity if seeking a refinance mortgage.
In a few weeks ago, the federal government announced two new programs to jump-start home mortgage lending. First, the Federal Reserve agreed to buy $500 billion of mortgage loan securities. After the Federal Reserve cut interest rates, lenders reported a significant increase in refinance loan applications. Part two is a $200 billion program to lend money to private investors who buy securities backed by student and auto loans, credit card debt and small-business loans guaranteed by the Small Business Administration. The only problem with this is that, mortgage lenders have not eased their guidelines for mortgage refinancing; they only make loans more accessible to borrowers with exceptionally high credit scores.
3 Comments
December 30th, 2008 at 11:42 pm
I am looking to consolidate a current variable second mortgage along with my high rate credit cards. I am a commissioned based earner and so I am thinking that I will have to go the ‘stated income’ route.
Can BD Nationwide assist me in procuring a stated income 100% second mortgage with a FICO score of 674? If not, please let me know if another lender would be able to assistance. Is the FHA mortgage refinancing competitive with FHA lenders like, http://www.fhahomeloanrefinancing.com/
Thank you, Steve Padgett
January 6th, 2009 at 2:52 pm
I have a quick refinance question. I refinanced my primary residence into my own name after my divorce in 2002 (I currently owe 132,704.00 at 6.75% fixed 30 yr on this first mortgage monthly payment = $1271.00). I have since had to take out a 2nd mortgage (a 100% equity loan which has a balance of $36,890.00 and is a 15 yr fixed rate loan at 11.75% and monthly payment of $465). Between these two loans I pay monthly $1,736.00 for a total combined loan balance of $169,594.00.
I would like to refinance this into better loan terms in order to save monthly income to pay down other debt and go towards savings. I have been employed at the same company for 20 years now and earn $65,000 gross income annually. I’m very interested to try to find a way to smartly roll these two mortgage loans into one loan with lower interest to lower my monthly payments. last time I checked my FICO score was ~ 680.
January 6th, 2009 at 2:55 pm
I still have some equity in my house. I would like to refinace my home and pay off all my other bills and credit cards. My ficoscores are low and my credit is very poor. What can you offer for refinancing?