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HARP2 and Credit Scores

New Contributor

HARP2 and Credit Scores

I am unable to traditionally refinance my residence, which is 85% LTV, my Scores are 729-747-771 and am contemplating applying for the HARP program. My current mortgage is a 30yr fixed at 6.625% and I wish to get a fixed, 15yr. Never been late, long time employed, very little debts/

 

Questions is (and cannot be answered in any forum related to Harp2) how much weighs in the FICO score and the possibility that under a 15yr loan payment my DTI would be 40%?

 

I am just sick and tired of being turned down at every corner for reasons of too much indebtness, high LTV or other garbage lenders come up with.


July 2014: EX 790, TU 810, EQ 828

Starting Scores: EX 521, TU 508, EQ 486

I came straight out of Hell
Message 1 of 5
4 REPLIES
Established Contributor

Re: HARP2 and Credit Scores

With those FICO scores and an 85% ltv, you shouldn't have much of a problem refinancing. What specifically are you being declined for? DTI ratios? You said you have too much debt... what do you have?


Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


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Message 2 of 5
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New Contributor

Re: HARP2 and Credit Scores

I have no debt other than the house. What lenders are referring to is that they will NOT refi at 85%LTV

When they mean too much debt, it is meant that my DTI is no good - even if I have paid on time for years and a new, lower mortgage gets me a LOWER payment.

Bizzarre.


cdtotten wrote:

With those FICO scores and an 85% ltv, you shouldn't have much of a problem refinancing. What specifically are you being declined for? DTI ratios? You said you have too much debt... what do you have?





July 2014: EX 790, TU 810, EQ 828

Starting Scores: EX 521, TU 508, EQ 486

I came straight out of Hell
Message 3 of 5
Valued Contributor

Re: HARP2 and Credit Scores

I thought HARP2 was only for 30 yr mortgages.  Also, make sure you are speaking with a lender that participates in HARP. Not all lenders do. The rules for HARP are that you have to be greater than 80%, and 85% is greater. Are you sure that is the problem?


Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
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Message 4 of 5
Regular Contributor

Re: HARP2 and Credit Scores

I know that Lenders like BedrockLending.com, Wells, Bank of America etc. allow up to 125% LTV under harp. Main problem is after 95% LTV it is allowed but your rates really start to rise.

Message 5 of 5