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Member
ely99
Posts: 11
Registered: ‎10-09-2007
0

Condo Refinancing

In today's credit market, can condo owners with a first and second mortgate (30 year fixed terms) on a condo purchased within the last two years refi one or both loans to what appears to be much lower current interest rates if you have less than 20% equity?
Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Condo Refinancing

[ Edited ]

Yes they may. 

 

In addition to having qualifying scores, debt ratios, reserves, equity, etc.... If you are going with conventional financing then for those low rates you will not only have to make sure your condo is non-warrantable but also make sure mortgage insurance is available as well (certain areas of Florida, California and a few other declining market states the mortgage insurance providers have shyed away from when insuring condos).... and for FHA you'll either need to make sure your condo is an approved FHA condo or it'll need to pass an FHA spot approval.

 

HUD/FHA approved condos: https://entp.hud.gov/idapp/html/condlook.cfm

FHA condo spot approval: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/96-41ml.txt

Message Edited by ShanetheMortgageMan on 02-03-2009 01:14 PM
Senior Contributor
MattH
Posts: 3,240
Registered: ‎04-03-2008
0

Re: Condo Refinancing

[ Edited ]

ShanetheMortgageMan wrote:

Yes they may. 

 

In addition to having qualifying scores, debt ratios, reserves, equity, etc.... If you are going with conventional financing then for those low rates you will not only have to make sure your condo is non-warrantable but also make sure mortgage insurance is available as well (certain areas of Florida, California and a few other declining market states the mortgage insurance providers have shyed away from when insuring condos).... and for FHA you'll either need to make sure your condo is an approved FHA condo or it'll need to pass an FHA spot approval.

 

HUD/FHA approved condos: https://entp.hud.gov/idapp/html/condlook.cfm

FHA condo spot approval: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/96-41ml.txt

Message Edited by ShanetheMortgageMan on 02-03-2009 01:14 PM

 

Be aware the HUD database has at least one ZIPCODE incorrect, I know because just now I looked up the place where I live!  First I searched by zipcode and was surprised not to see mine appear, so then I searched by State and Name to discover my development is listed but with a zipcode about half a mile West of here!

 

I have no idea how many such errors may exist in the HUD database, but somehow I doubt I just happen to live in the ONLY place where the HUD database gives the wrong zipcode.

 

Edited to add: I also noticed one of the places that IS listed as being in my zipcode is actually in a zipcode about a mile South of here!  So in my County alone in a quick search I discover two zipcode errors...

 

 

Message Edited by MattH on 02-03-2009 06:53 PM
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