Posted: Sun Jun 28, 2009 10:07 am Post subject: Refinance singlewide on land in Texas
Hi,
We are looking to refinance a singlewide on land. Located in Texas. Ok credit but not great. We are owner financed and have a balloon note coming up. Help!
Thanks
Refinancing a loan will depend upon your credit score as well as your income. If you do not have a stable income, lenders may not refinance the mortgage. As far as credit score is concerned, to get a FHA refinance, you would require a credit score of 620 whereas for conventional loans, you should have a credit score of 720.
Apart from this, you should also have equity in the property. If there's no equity in the property, then lenders will not be ready to refinance the loan. I would suggest you to speak to the lender and check out what he has to say in this regard.
It is necessary to get pre-qualified to get a mortgage loan. Lenders consider your employment history, credit history and present income and monthly expenses to find out whether your loan can be processed.
Employment History:
Lenders generally consider employment status of the past 2 years of applying for the loan. There can be changes in jobs but there should be stability in income. For those who are self-employed, lenders usually consider their personal income as well as the profits in their business. They generally prefer those self-employed persons who have 25% or greater interest in their business.
Credit Score:
The credit score is a number assigned in your credit report that indicates your creditworthiness. The credit reports are generally ordered by lenders from credit bureaus who collect information about the financial status of an individual. Based on a statistical analysis of your credit history, your credit score is determined. Whether you have paid back your credits in time and the amount of outstanding credit affect your credit score. Lenders generally consider the FICO score to determine the credit score. The FICO score lies between 400 and 900. A higher credit score implies a better chance of getting the mortgage.
Monthly Income and Expenses:
The housing ratio and debt ratio involving your monthly income and expenses towards debts determine whether you can qualify for the loan. The housing ratio being the ratio of your monthly mortgage payments and monthly gross income should be about 28% to get pre-qualified. The debt ratio which is obtained by dividing the sum of the monthly mortgage payments and other debt payments with the monthly income is expected to be around 36% so that you can easily pre-qualify for a mortgage loan.
Thus with a good employment status, a fair credit score and the expected level of income and expenses, a borrower can easily qualify for a mortgage loan.
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Posted: Tue Jun 30, 2009 3:13 pm Post subject: owner financed- balloon note due
Hi,
Thanks for your reply. We are not trying to refinance for the lower interest rate but have an owner financed balloon note due where we can possibly loose everything. The value is in the land not the manu home. We do have equity have approx 50,000 in equity on the land. Located in Texas. Anyone have any ideas? (other than local banks)?
Thanks!
Anne
If you have equity in the land, then you can definitely apply for a refinance. But refinancing will also depend upon your credit score and income. You should have a credit score of 700-720 in order to get a loan. You should also have a stable income in order to prove that you would be able to pay the mortgage after you refinance it. _________________ Procrastination is the enemy of your financial sucess
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