Refi fail

[tcbofade]

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@frugalQ wrote:
Can you check with the cc companies for the cards with zero balance and ask if a 0% offer is available. If so, take the balances from interest bearing cards and transfer to 0% interest cards....at the very least it will save you on paying interest.

If your balances are as substantial as it appears from your post, the monthly interest paid is probably very high.

Have you tried getting a private note from a private investor?  No.  Where would I find such a thing?

Sorry....I can't think of anything else.

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No worries...thanks for your input.

[tcbofade]

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@Anonymous wrote:

Is the cc debt on both of ur names dw and dh?

do u need both dw and dh income qualify for refi?

there r options i can think of but u need to provide more ino so we can get creative.......

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I have plenty of CC debt.  She has plenty of CC debt.

Currently, only DW has a mortgage.

We're trying to beat my credit union into writing ME a second, but it doesn't look good.

[Anonymous]

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@tcbofade wrote:

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@DallasLoanGuy wrote:

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@tcbofade wrote:

Well, sunnybeach.  Now what?

DW and I purchased a home short sale in November of 2013.  Gobs of equity at close.

We spent quite a bit (on plastic) rehabbing the house with the intent of refinancing in January of 2015.

Option #1 failed....cannot refinance conventional due to low credit scores caused by high CC debt.  No negative information on any reports, just LOTS of CC debt. you should be able to get score up to 620 easily for the minimum required score for conv

Option #2 failed....changed to an FHA refi due to higher DTI allowance, but appraisal came in much, MUCH lower than expected.

Now what?

We owe $112k on a home that just appraised at $155k.  (Appraiser sucked, should be closer to $200k)   112/155 =  72% ltv. which is awesome

Credit scores in the low 600s.

Credit union won't write a 2nd mortgage due to DTI.

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are you trying to do cash out?

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Yes, that is the whole point.  We are trying to pull cash out to pay off at least some of the CC debt.

She COULD simply refi the existing note into a higher rate, but that doesn't make any sense.

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What's wrong with this idea, so long as the rate is lower than you CC rate? 

[tcbofade]

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@Anonymous wrote:

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@tcbofade wrote:

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@DallasLoanGuy wrote:

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@tcbofade wrote:

Well, sunnybeach.  Now what?

DW and I purchased a home short sale in November of 2013.  Gobs of equity at close.

We spent quite a bit (on plastic) rehabbing the house with the intent of refinancing in January of 2015.

Option #1 failed....cannot refinance conventional due to low credit scores caused by high CC debt.  No negative information on any reports, just LOTS of CC debt. you should be able to get score up to 620 easily for the minimum required score for conv

Option #2 failed....changed to an FHA refi due to higher DTI allowance, but appraisal came in much, MUCH lower than expected.

Now what?

We owe $112k on a home that just appraised at $155k.  (Appraiser sucked, should be closer to $200k)   112/155 =  72% ltv. which is awesome

Credit scores in the low 600s.

Credit union won't write a 2nd mortgage due to DTI.

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are you trying to do cash out?

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Yes, that is the whole point.  We are trying to pull cash out to pay off at least some of the CC debt.

She COULD simply refi the existing note into a higher rate, but that doesn't make any sense.

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What's wrong with this idea, so long as the rate is lower than you CC rate? 

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Nothing is wrong with it.  Do you know a bank that will do it?

[tcbofade]

As I imagined, my credit union came back and said, "No".

Any other ideas?

[StartingOver10]

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@tcbofade wrote:

Well, sunnybeach.  Now what?

DW and I purchased a home short sale in November of 2013.  Gobs of equity at close.

We spent quite a bit (on plastic) rehabbing the house with the intent of refinancing in January of 2015.

Option #1 failed....cannot refinance conventional due to low credit scores caused by high CC debt.  No negative information on any reports, just LOTS of CC debt.

Option #2 failed....changed to an FHA refi due to higher DTI allowance, but appraisal came in much, MUCH lower than expected.

Now what?

We owe $112k on a home that just appraised at $155k.  (Appraiser sucked, should be closer to $200k)

Credit scores in the low 600s.

Credit union won't write a 2nd mortgage due to DTI.

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So how much cc debt are you looking to pay off?  I mean, if the appraisal came in at $155k what is the cash out LTV the FHA lender will do? Are they limiting you to a lower LTV?

CU's are not as flexible as regular mortgage lenders. 

Is it possible that you can get a FHA loan and use the proceeds to pay down/off your debt and then a few months down the road, when your balances are reporting much less, get a HELOC from a local lender to pay off the rest?  They won't use the FHA valuation at all.

[tcbofade]

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@StartingOver10 wrote:

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@tcbofade wrote:

Well, sunnybeach.  Now what?

DW and I purchased a home short sale in November of 2013.  Gobs of equity at close.

We spent quite a bit (on plastic) rehabbing the house with the intent of refinancing in January of 2015.

Option #1 failed....cannot refinance conventional due to low credit scores caused by high CC debt.  No negative information on any reports, just LOTS of CC debt.

Option #2 failed....changed to an FHA refi due to higher DTI allowance, but appraisal came in much, MUCH lower than expected.

Now what?

We owe $112k on a home that just appraised at $155k.  (Appraiser sucked, should be closer to $200k)

Credit scores in the low 600s.

Credit union won't write a 2nd mortgage due to DTI.

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So how much cc debt are you looking to pay off?  I mean, if the appraisal came in at $155k what is the cash out LTV the FHA lender will do? Are they limiting you to a lower LTV?

CU's are not as flexible as regular mortgage lenders. 

Is it possible that you can get a FHA loan and use the proceeds to pay down/off your debt and then a few months down the road, when your balances are reporting much less, get a HELOC from a local lender to pay off the rest?  They won't use the FHA valuation at all.

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We were hoping to pay off 40k plus.

FHA will go to 85% LTV, but that only generates about 20k in cash.  Which doesn't pay off enough CC debt to get DTI under 55% or whatever their threshold was...