01-01-2013 10:50 AM - edited 01-01-2013 10:57 AM
It's been nearly a year since beginning the quest to refinance two investment properties. Four banks, three brokers, and eight hard inquiries later, I'm back to square one. Attempting to refinance under HARP 2.0, I have supplied all supporting paperwork including 1040's with all of the forms, bank statements, savings, etc. where my income is both W2, and self employed. I have yet to meet a lender who understands the mortgage triangle that HARP guru Dan Greene talks about. The triangle includes equity, DTI, and cash. Additonally, I have met but one broker who understands all of the tax forms, and the DTI truly does work.
As of Friday, I was turned down by Quicken, who by the way was the only lender to furnish a mortgage review letter, with all of the credit bureau data. I have mailed the appeal to the MCAD in Boston, as their excuse was "self employed income not supported". Huh? You have all of the forms. Oh and one other thing that I learned about Quicken is that they won't lend less than $75000.
A second broker threw in the towel, and indicated that he was referring me to a non-corresponding bank, whatever that is?
My setup is currently all SE income (however I am looking for a regular employer), DTI on the backend is 48% (lots of rentals), 816 FICO all green, no plastic, no other debt, and I have around $72000 in cash (self employed). The two mortgages are 140K, and 67K.
No one has recommended cash in in order to lower the DTI, of course with Quicken that's not an option. The only other thing I can think of is doing business with a small local bank. Does anyone care that you took off time from work in order to run Toys for Tots, or belong to both the Angel Flight Network, and Pilots and Paws? Apparently not.
I am all ears if anyone has any recommendations. Happy New Year to all.
01-01-2013 09:47 PM - edited 01-01-2013 09:50 PM
I successfully refinanced an investment property using Fha streamline refi. If one of them is an Fha loan I can give you the name of my loan officer. It was easy they didn't even do a DTI. I don't think she does HARP for investment properties but she is knowledgeable enough that I would trust her referral.
If you want her contact info please send me a private message. good luck and dont give up! You can also consider moving into the properties in order to refi ....
01-04-2013 09:23 AM
Based upon a few recommendations over on Zillow mortgage, I called the current lenders to see what they had to offer: 3.75 on a 30 year fixed from USB, 2.75 on a 15 year from Wells, no gouge for investment properties. I chose to float, as things will cool down after this fiscal cliff ordeal. What each lender had posted on their sites for refi rate, is the rate that they quoted. There's also no DTI cap if you refi with your current lender, and that's huge, as this was mandated by Congress in October. I'm glad to see that they are finally playing ball. These people are out straight doing refi's, up to 90 days I was told. Hope someone else finds this information useful.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.