I recently bought a house for $600k with 5% down. We went in thinking $30k or so in electrical work, which turned into almost $175k in a full studs in rehab. The house is basically new, and worth 775 to 825k now, so we didnt lose our shirts but definitely not a great experience.
Long story short, 800 fico going in is now at 640 to 655 depending on which score and Bureau. I have almost 200k in revolving debt, with about 125k of that being high interest. No lates ever, no collections, but the utilization is killing my score. Domino effect, Citi saw my other cards getting close to limits I guess and they cut my line down by $25k so it looks as though it was maxed out.
Having just bought the house we had about 10 inquiries for shopping the rate, plus we had a previous contract fall through and due to timing had to have credit pulled again. The rehab drained our cash reserves and we opened accounts at floor and decor, home depot, and a wells Fargo personal loan for 40k. The whole time I would have done anything to go back and buy a different house, however now that it's done I couldn't be happier and we will grow old here (waterfront on Tampa bay, we fish off the dock every night, it's amazing) .
I'm paying out $13k a month in minimum payments currently including the house, and most of it goes to interest. I make about 25k gross on average (commission) per month, so its tight after taxes but we are ok. Needless to say I need to get this high interest debt refinanced so I can start making a dent in the total. With my income and expected future earnings a home equity loan or heloc make sense, and I can quickly knock off several thousand per month from the balance. At 25% interest right now it's a Gd joke.
I got approved as a member of sdfcu but they wont do the heloc because of recent inquiries and increase in debt. I told the lady the whole story so OBVIOUSLY I would have a recent increase in debt, and she said no problem score is over 580 we can do 95% cltv. I owe 565k currently, so if we see an appraisal of $750k, 95k gets me 145k or so after costs. That would be a huge help, with a payment closer to $1000 per month.
Unfortunately they rudely exclaimed they couldn't do the loan the next day because "you have 19 inquiries". Well uh yes, because as you know I bought a house (twice) in October. At the time my fico was 617, I paid off 25k in debt to increase it to the 640s now.
I am approved for membership with signature but they are telling me my wife needs to go on the loan, and her credit is similar but score is in the 500s because of lack or history until recent accumulation of debt. In Florida on every other mortgage or heloc I've done, spouse does not need to be a borrower.
Any suggestions on where to start here? Credit union seems like the best choice for a 2nd lien. I have no military in family. I joined acc for sdfcu.
Was looking at apple, Notre dame, and alliant.
I could do a full refinance of the 1st mortgage too, but I an at 4.75% (had lender pay our closing costs) on a jumbo loan, and I dont see getting that low at 640 FICO.
I had someone get a bit too far into my business on another forum when I shared this. I'm looking for guidance on the products and lenders, not to be told that I need to sell my house. I will likely make over 400k in 2019, so this pain is temporary and I've been in much worse shape before with an ex wife robbing me blind. Paid off 100k in debt with 75k in household income in 2 years back then. Sorry To sound snooty, I just want some help for anyone who is willing to provide it.
