Making Home Affordable refinance question

Hello,

I hope someone can answer my questions regarding Making Home Affordable refinance requirements/options.

Bought a home in Michigan in 07/05 for $285k and did a 5yr arm interest only for the 1st mtg and also a 2nd mtg. There was no down payment.

The interest only feature of the arm is going to end in July making the mortgage payment more than we can afford.

I looked into refinancing in 12/08 but would have been required to have about $50k cash to refinance due to the home losing value.

Got buried in credit card debt and filed Ch 7 earlier this year and it was discharged.

My spouse did not file and we did not include the home in the Ch 7.

Will we be eligible to refinance into a 30 yr fixed mtg under the Making Home Affordable refinance program?

The loan is eligible because it is owned by Fannie.

Chase is the current mtg company for the 1st mtg & BOA for the 2nd.

We have never paid late on either mtg and both are still current.

We want to remain in the home and get into a 30 yr fixed before the interest only period ends.

I would love to hear if we have options under the new program.

I have never read if there are credit requirements (score) for the Making Home Affordable refinance programs.

A new 30 yr fixed loan would allow us to be able to afford the payments and remain in the home as we have always intended to do.

Thanks in advance

Posted: Wed Oct 28, 2009 10:35 am Post subject:

Forgot to mention the house is worth about $210-$234k currently and the amount on the 1st loan is about $226k.

jveenstra · Posted: Wed Oct 28, 2009 10:44 am Post subject: Home Affordable Program

Under the Home Affordable Program, the second mortgage with B of A can not be included in any new mortgage, it must be subordinated and kept.

There are no minimum credit scores for the first mortgage, however, the credit score will be used in the pricing of the new first mortgage. With the bankruptcy, I'm guessing the credit scores may be on the lower side.

While many lenders are permitted to do a Fannie Mae refinance under this program, the present servicer of your loan has the most flexibility and I believe in your case you need some flexiblity. I suggest you speak with Chase. If they can not help you, no one else can.

Posted: Thu Nov 05, 2009 9:53 am Post subject:

Hi John,

Thanks for the response.

I wanted to update this and mention that FICO is currently 635 and my spouses score is higher than that around 700.

Does that change your response to my initial questions?

Any idea if I would be able to get into a 30 yr fixed with a decent interest rate?

Thanks for your help.

jveenstra · Posted: Thu Nov 05, 2009 10:11 am Post subject: Refinance

The lender uses the lowest middle score of all borrowers. That appears to be 635.

Because the first mortgage balance is about 107% or higher (over 105%) your best bet is to work with your current servicer--Chase. Call them and ask what the rate would be. The B of A loan needs to be subordinated and whatever Chase can due us dependent upon Chase getting the subordination approval from B of A.

I do not think it will do you any good to speak with anyone other than Chase

Posted: Thu Nov 05, 2009 10:20 am Post subject:

Thank you very much for taking the time to help with my questions. I really appreciate it.

jveenstra · Posted: Thu Nov 05, 2009 10:55 am Post subject: Refinance

Best wishes. Hope it works out beneficially

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