Re-fi to Conventional?

Anonymous · ‎05-06-2016

I'll try and keep this short and sweet. The mortgage for our house is in my wife's name. 5.25% FHA. Refinancing to another FHA doesn't make sense because of the increase in insurance since she closed on our house 4 years ago. My wife can't refi on her own (too much debt in her name and not enough income). I make most of the money but I have a bankruptcy that will be 4 years old in October. I believe 4 years is the minimum waiting period to go conventional after bankruptcy.

Question is: If I'm added to the loan would it be considered a re-fi, or would it be considered a completely new loan? Does it matter? Also, we don't have the money for what is typically required to be "put down" on a conventional, but we have about 100K in equity on our home. Could that be considered a "down payment"? Is there anyway to get into a conventional by using equity as a down payment?

I appreciate your help.

Anonymous · ‎05-06-2016

You cannot be added to a loan, only to title. A refi is a completely new loan as well.

Do you both want to be on the new loan?

Anonymous · ‎05-06-2016

She has the better credit, but I have the income. If I could get my credit up, going it alone might be option for me, but she wouldn't qualify on her own because she doesn't make enough money anymore.

I though with her credit and my income that'd give us our best chance at qualifying.

Anonymous · ‎05-06-2016

@Anonymous wrote:
She has the better credit, but I have the income. If I could get my credit up, going it alone might be option for me, but she wouldn't qualify on her own because she doesn't make enough money anymore.

I though with her credit and my income that'd give us our best chance at qualifying.

If you use your income, you would have to use your credit as well.