Refi fail

[tcbofade]

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.

[frugalQ]

Can you get a consolidation installment loan and pay off your cc cards?

That should help your scores and possibly DTI.

[tcbofade]

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@frugalQ wrote:
Can you get a consolidation installment loan and pay off your cc cards?

That should help your scores and possibly DTI.

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I don't think so....see updated scores in signature.

I'm kind of stuck in the "pay down your debt, then you can borrow against the equity you have in your home to pay down your debt" trap.

[frugalQ]

Oh, Ok. Im on my phone and can't see your signature.

Tcbo, I know you are credit savvy. Are you able to consolidate some of your cards so that you can show zero balance on some of them?

[tcbofade]

Ummmm.  Not really, no.  I've got some zero balances, I've got some maxed out, and many, many inbetween.

[Anonymous]

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.......

[gdale6]

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@tcbofade wrote:

Ummmm.  Not really, no.  I've got some zero balances, I've got some maxed out, and many, many inbetween.

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Moving the maxed out cards down below 90% of their CL may give you the boost you need, the ding for this (maxed cards) can be substantial.

[frugalQ]

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?

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

[DallasLoanGuy]

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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?

[tcbofade]

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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.