topic Re: CAN ANYONE REFI ANYMORE!!!!!!!!! in Mortgage Loans

CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Tue, 17 Feb 2009 22:44:38 GMT

HERE'S THE PROBLEM I'M SELF EMPLOYED WITH A PRETTY NICE FICO 680 I MAKE MORE THAN ENOUGH MONEY ALL MY BILLS PAID ON TIME NEVER ANY LATES .BUT MY TAX RETURN IS GETTING IN THE WAY BEFORE IT WAS THE FICO NOW IT'S YOUR TAX RETUNS.WHAT IS A PERSON TO DO THEY SAID THEY CAN'T DO STATED ANYMORE BUT WHY IT'S SO MESSED UP BECAUSE PEOPLE LIKE ME WHO HAD NOTHING WITH THIS HOUSING MESS GOT THE LOAN STATED WHICH THEY HAD NO PROBLEM APPROVING.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Tue, 17 Feb 2009 22:56:44 GMT

Honestly i'm not really sure what you're asking, lack of punctuation and caps looks is hard on the eyes

But to answer your question from your title... yes, people are getting refinanced all the time. Don't buy into the media hype The requirements are a little tighter... a conventional loan usually requires a minimum score of 680. It couldn't hurt to look into it, call some lenders and see what they say. Good luck!

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Wed, 18 Feb 2009 00:50:25 GMT

what it is that i'm trying to say is that I HAVE TRIED calling the lendors and as soon as they look at the debt ratio there's a problem look I have refi my home in 2005 with no problem I understand things have changed since then but my god give the self employed a break we are by law supose to write things off .I guess what I need to know is there anyone out there trying to refi as stated income or does that not exist anymore BECAUSE I HAVE BEEN EVERYWHERE!!!

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

DallasLoanGuy — Wed, 18 Feb 2009 00:57:02 GMT

Real simple:

You make enough money or you don't. And if you do... then it is on your tax return.

Take a bunch of deductions to reduce your tax bill, then you reduce your income too.

File amended tax returns for '07 when you file '08. Pay the penalty and enjoy your refi..... or don't.

You can't tell the irs that you make $10K and your loan officer $100K.

Not anymore.

Think: "having your cake and eating it too". These loans have high default rates. They will be back someday.... but nor anytime soon.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Wed, 18 Feb 2009 01:04:21 GMT

But thats the thing i don't want to amend my tax return and set myself up for a audit HELLO !! I do want my cake and eat it too.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Wed, 18 Feb 2009 01:16:18 GMT

Don't well all, Deanna? lol

*shares cake with Deanna*

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Wed, 18 Feb 2009 01:20:25 GMT

Be my guess Have some, LOL!!

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Wed, 18 Feb 2009 02:58:10 GMT

The bottom line is that your income as self employed is your cash flow into the business minus your expenses. The more you claim expenses the less income you have. In this market, with banks loosing billions and people being underwater, why should you expect a lender to not have adjusted lending standards. Stated loans have been disapearing for a couple years now and have been pretyy much gone for over a year. They were orignally meant to be only for people with stellar (say 740 +) credit and large down payments but less income. They were never intended to be a mass produced loan for everyone who wanted to write off all their expenses. I for one am glad they are gone. If I have to use w-2 income to qualify, so should everybody else without extenuating circumstances (i.e 740 credit and 20-30% down)

No offense intended, but alot of people are having a serious wake up call who bought in 2002-2006/7. Just because loans were given out then, doesn't mean they should have been...And the current market proves that out.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

MattH — Thu, 19 Feb 2009 01:45:40 GMT

There's a reason no-doc loans became known as "liar's loans."

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Ray0040 — Thu, 19 Feb 2009 02:09:44 GMT

Wow that is not really a fair characterization. Self-employed individuals do not receive W-2's, so they should not qualify for mortgages.

Depreciation on certain assets is a common deduction taken by the self-employed. It's a paper deduction in many cases that lowers "gross income" but is not a cash outflow. Take the use of a portion of the primary residence for example.

More egregious examples are health insurance and retirement contributions. A "W-2" employee pays the employee portion of their health insurance and their 401K contributions with pre-tax dollars. The "W-2" employee enjoys a tax benefit from doing so, but those monies are still inluded in gross income on the W-2.

A self-employed filer is able to deduct those contributions from their taxes as well, The difference is that as Schedule C income, the concept of gross income is blurred and when applying for a mortgage, it is as if those funds were never earned.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Thu, 19 Feb 2009 02:45:44 GMT

Expenses are expenses, whether from depreciation or simple write-off. Somewhere along the line you spent that money regardless. Perhaps, when it comes down to it--after you buy your groceries, pay rent, eat at fancy restauarants (all write-offs for some self-employed people) you don't actually make enough to qualify for a mortgage. Sure a few years ago, you could get a stated income loan, but that's before all the people who couldn't actually afford a mortgage went out and got loans for million dollar tract homes in the middle of nowhere because the big bad broker told them to.

I am self-employed and managed to get a FHA mortgage during 2008 and am currently refinancing (although, it's a streamline FHA.) My median credit score at the time was 697, which was just under the 700 needed for a conventional non-conforming jumbo loan. After a $15 medical collection was finally removed a month after closing (I asked for two years), my median credit score went to 720.I never intended on using a stated or a no-doc loan, and I didn't.

When I switched to the FHA product, I put 5% down instead of 10%, and used the money to remodel my bathroom.

I had several years of steady income from self-employment documented by 1099's and tax returns. I also had to show my current books and a couple of long-term contracts I hold, amoung other proofs of income.

It's offensive to say that self-employed people shouldn't get loans because they don't have w-2s. The amount of paperwork required for a self-employed person to get a loan is huge compared to a W-2'd applicant. What it comes down to is that if you make enough money, there is really should be no amount of deductibles that should wipe your income out completely. If you make really good money being self-employed and deduct everything under the sun, you can still walk away with an adjusted income that qualifies you for a house. Luckily, my mortgage broker did not have the same narrow-minded attitude I find all over the internet about self-employed people.

Re: CAN ANYONE REFI ANYMORE!!!!!!!!!

Anonymous — Thu, 19 Feb 2009 02:58:06 GMT

The problem comes in because too many people who are self employed deduct alot of stuff that other people can not. This more than offsets the whole health care part. Alot of self employed people deduct as much as they possibly can and that makes sense short term, but if you are deducting a large portion of your rent/mortgage, your car payments/insurance, partial utility bills on your residence, and then the direct business costs you incur, it is going to cut into your income. It very much is a "you can't have your cake and eat it too" scenario. Alot of bad mortgage brokers and bad buyers willing to fake paperwork did ruin this for people who were self employed and wanted to do stated income, but as I said before, stated income was never meant to be a normal loan. It was originally only for people with A+ credit and high down payments. Most self employed people with high down payments and a+ credit can still get loans through local banks. However, the everyday workingman with average credit looking for a refi or a 3% down stated loan can not now. Again, these loans were not orignally intended for that and only got that way during the boom. You can't be mad at banks for dropping the products that have essentialy destroyed their industry (i.e. subprime, 80/20, and stated income loans)