Recently divorced. Need to refinance first mortgage and helo

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Icon Mini Profile christinestout

Joined: 03 Jun 2008

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Post Posted: Tue Jun 03, 2008 6:32 pm    Post subject: Recently divorced. Need to refinance first mortgage and helo

I have 90 days to refinance my home and get my ex-husband's name off the loans. I was a stay at home mom and have just recently started my own business. I recieve $3000 per month in alimony/child support and I have a boarder in my home paying $1000 per month. My home is worth about 650K. My first mortgage is $294K at 5.625 /30 yr fixed. My HELOC is $244K at prime minus .75 (currently 4.25) My credit is good, I have never missed or defaulted on any payments. I am concerned about qualifying. I am currently earning about $3000 a month gross which I expect to increase in the very near future. I don't want to have to sell my home. Please help.
Icon Mini Profile larry

Joined: 27 Jun 2007

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Post Posted: Tue Jun 03, 2008 11:51 pm    Post subject:

Hi christinestout.

Welcome to the forum.

You may not qualify as your monthly income is not too good enough for it. BTW have you shopped for lenders? Talk to some lenders and see whether they can qualify you for it or not?

You can even go for No-obligation free consultation from the community lenders to know whether you can qualify for refinancing or not.

Hope it helps.

Best of luck,
Icon Mini Profile chrisburns
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Post Posted: Wed Jun 04, 2008 2:36 pm    Post subject:

So your making about $7000K per month which isn't bad. You may have a good chance at qualifying. You should definatley talk with a bank or broker about your options.

They'll need to go over all your debts such as car payments and credit card payments with you. I think based on the info you provided it's definately worth a shot. or if you post all the details here we can give you a pretty good idea of where you stand.

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Icon Mini Profile jbarto65

Joined: 04 Nov 2007

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Post Posted: Tue Jun 10, 2008 3:57 pm    Post subject:

I agree, I think that that is a pretty descent income and that you should qualify for a loan with a bank. Have you tried just walking in and sitting down with a loan officer, you may be surprised at what you hear, go for it, you may have a real chance here.
Icon Mini Profile erb1953

Joined: 24 May 2008

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Post Posted: Tue Jun 10, 2008 7:33 pm    Post subject:

I think you got some pretty good information here, you should be able to get a loan with your income. what have you tried so far? You can go to your local bank as suggested above and just sit down with a loan officer, lay it out on the table and see what your options are.

I hope you get to keep your home, I think that if you explore all your options you will. Best of luck to you, please keep us updated, we will keep our fingers crossed for you.
Icon Mini Profile gmakerley
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Post Posted: Sat Jun 14, 2008 5:24 am    Post subject:

clearly the biggest hurdle you'll face here is documenting your income. if you have only recently begun your own business, it's going to be struggle to verify $3000 monthly income. income from a boarder is "iffy" to say the least - some products simply don't consider that income (some do, of course). your alimony and child support payments have to be documented as well - regular receipt of them for a minimum of 3 consecutive months is the minimum verification required.

frankly, i think your effort to refinance is going to be difficult. at the same time, i don't want to dissuade you from trying to find out what is available to someone in your situation. i have a suspicion that you'll find yourself dealing with a non-prime lender (can we still say "sub prime"?). yours is not a situation that's readily available on a conforming loan product.

you've got credit on your side it would appear. however, you owe about $538K on this home, which is more than 80% of the home's value. at an interest rate of 7%, and based on 40 year amortization, your monthly principal and interest payment is equivalent to almost 50% of your claimed income. this does not include taxes, insurance, or mortgage insurance if that is applicable. also, any other indebtedness you have would be a factor in your qualifying.

again...not to discourage, but my initial take on the circumstances you're in is that you'll not find the path to refinancing easy.

George M. Akerley
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Icon Mini Profile brian1
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Post Posted: Sat Jun 14, 2008 7:08 pm    Post subject:

I agree with George. The above information is not based on solid info. You are going to have a VERY difficult time financing and need to have facts instead of a smoke screen thrown at you. Your income from self employment will not work it is too recent and requires 2 years and tax returns to document. You need to renegotiate with the ex or look at selling. Better to get the truth now that to spin wheels trying. Even if there was a loan product out there it will likely be cost prohibitive.

Good Luck to you Divorce is never pretty and this is just a small part of a difficult situation I am sure.


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