DTI

[boober]

Let me ask you thia Mike, with your friend, after you made the call to quicken, didn't they want your friends tax returns or some sort of actual proff of income?

I mean if I didn't need to provide actual proof of income, well then I'd just tell them I make 10,000 a month. I mean why not if it will get me a HARP refi.

[webhopper]

If the rental was purchased with an FHA mortgage as your first home, you can do an FHA streamline refi

[webhopper]

Unfortunately you shouldn't state an income that is not accurate for the purpose of obtaining a mortgage... That is known as mortgage fraud.

[boober]

Ok what the hell gives?!?!

Out of curiosity I just googled "harp 2.0 proof of income", and according to this article that showed up at this link...

http://themortgagereports.com/11157/harp-changes-no-income-needed-with-money-in-the-bank

It says the following there...

"Effective immediately, Fannie Mae and Freddie Mac no longer require verification of income from at least one HARP borrower. In lieu of such verification, HARP applicants can provide proof that at least 12 months of mortgage payments exist in reserves for the subject property, where "mortgage payments" is a sum that includes principal + interest payment; monthly real estate tax payment; monthly homeowner insurances payment; and, any requisite association or community dues.

Borrowers can document 12 months of PITI using any of the following asset statements :

• Checking and savings account, or money market mutual funds
• Liquid investments in bonds, stocks and/or mutual funds
• Vested monies in a retirement account

Furthermore, these conditions are for the subject property only. Borrowers are not required to show that reserves exist for non-subject properties."

I should have been able to do a HARP refi with quicken. I told the quicken rep that I have about 47,000 in my 401k plus about 2000 in my bank account. Which would be more than enough to cover 12 months of mortgage payments.

Seems as though I should have been able to do a HARP refi even though my DTI is around 70%?!?!

[frugalQ]

I did a streamline refi last year on my house and learned that although the governmental requirements were only to have 12 months of on time payments (no credit or income requirements), the bank over-laid their own requirements. We had had have at least a 660 credit score, had to be at 43% DTI or lower, and they did a full underwriting (with income verification)....we could not have any glaring outstanding items on our credit reports.

Quicken probably added their own requirements.

[Mike_B03]

For the person I helped with the Quicken HARP refi, there really were no income verifications, no tax records...nothing like that. The only thing they asked for was a valid business license because ther person in question is self employed, but that's literally it. Smoothest trancsaction Ive ever seen...closing is this week on the 23rd and they applied on May 9th. Already got the HUD-1 today and everything.