Need refinance loan for Texas owner-occupied property?

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Hi,

I need a loan for property in Texas, home value worth $250,750, it's is a single family residential property and owner occupied. I am ready to submit full documentation. It's basically to do a refinance at 85% LTV. But I do have a gap in employment for 5 months; otherwise my current job is fine as was the earlier one month ago. I am the primary wage earner having 660+ FICO and my wife will be the co-borrower, FICO 600. Can anyone help??

adonis · Posted: Tue Apr 17, 2007 5:26 am Post subject:

Welcome Dacey,

You may interact with some of the lenders in this community. They can help you out.

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As per the details you have provided you shouldn't face much problem in getting a refinance. But take estimates from a few lenders before selecting the one which will be most suitable as per your needs.

kenstampe · Posted: Thu Apr 19, 2007 9:10 am Post subject:

Dacey, the job gap shouldn't be an issue. I'm in Texas if you want to PM or e-mail me I'm happy to talk to you about it.

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We have a home currently but are moving out of town next month. We have decided to sell or give the house for rent. What I want to know is, can I refinance the rental property. Is it allowed in texas?

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You can refinance the rental property but you need to inform the lender that you are offering the property for rent.

sara · Posted: Tue Apr 24, 2007 4:53 am Post subject: RE: refinance rental property

Hi Jacques,

Welcome to the forums.

You can refinance a property which is not owner-occupied but it is quite possible that you may be offered a lower loan to value ratio, say around 75% of the property value. This is due to the fact that the house is no more a residential property, rather it is an investment property.

Take Care

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I need a loan for refinance worth $400,000 in Texas. It's a single family residential property and I am looking for 90% LTV. My fico score is 605. The property is my primary residence. Would it be ok if I can show 12 months personal bank statements

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Hi Gary,

You can get refinance of 90% ltv but your score has gone down, if you can wait for some more time for it to improve then it would be much better. Good credit score will help you to get good rate estimates.

ckalvesmaki · Posted: Tue May 01, 2007 4:32 pm Post subject:

Ok.....let's clear up another misconception......conforming loans ie Fannie Mae and Freddie Mac are NOT score driven.....in other words you either get an approval or you get a levels approval.........it has nothing to do with your score on a conforming loan product an 800 score and a 600 score equals the same rate if both loans are approve elgible.

Having said that.......Gary you can't use bank statements for a conforming loan. Are you trying to take cash out? In TX you can't do that over an 80% loan to value.....What is your currrent rate?

Jessica · Last edited by Jessica on Sat Jul 21, 2007 4:24 am

It is true that lenders use credit scores to approve mortgage loans. But the fact remains that they do not disapprove loans just because of a bad credit score as far as it is a conforming loan.

Apart from the most widely used FICO score, lenders consider the down payment, good cash reserves and the housing and debt to income ratios. Off course they would require you to have a minimum credit score but scores do not contribute towards approving a loan or denying it.

Another important aspect of conforming loans is the interest rate. Most people have the idea that a low score would require them to pay a high rate of interest and hence they stop themselves from applying. But lenders offering conventional conforming loans do not fix the interest rate based on the credit score only.

Usually lenders demand a charge known as Risk based pricing when they approve a mortgage loan to someone with a low score. Otherwise on conventional conforming loans, a 580 score would get you the same interest rate as a 700 score provided you can make a 20% down payment when you purchase a property.

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Jessica,

Parts of your post are not very accurate.......it is possible for someone with a 580 credit score to get the same approval as someone with a 700 score.....I have a file just like that right now.....577 mid score and an approve elgible loan.......ie a rate of 6.250% on a 30 year fixed......another client 740 score same 100% loan 6.250% approve elgible. Risk based pricing for conforming loans is an expanded approval condorming loans have 5 levels of risk.....none of which are based on score but on over all credit profile. Then there are non score driven programs like FHA,ACORN and NACA or community committment loans as well.

Jessica

Well, it is true that someone with a 580 score can get the same approval as someone with 700 score and that's what I said in the previous post. But then you are perhaps speaking about the risk based pricing, is it? And, what you mean is that risk based pricing is not based on score rather it depends on the overall credit profile of a person. Ok, I get it now, thanks a lot for your sharing your views with me. Sharing information does make a person knowledgeable. Smile

kenstampe · Posted: Fri May 04, 2007 8:23 am Post subject:

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My wife and I own a two family unit along with my in-laws. I have been paying for most of the mortgage but they helped me with down payment. It is now that they want to get off the title and have us refinance the loan as they will retire soon. What we would actually be doing is, buying them out with a bigger loan to pay off the old loan. But we cannot qualify for nor can we take out a larger loan to pay them the original down payment and their share of equity right now. They have agreed so that we can keep part of the money towards the new loan with the understanding that we would pay them back later on. But is there any tax liability on the borrowed or gifted money that we are getting from them to lower the house payments. and do they have to pay tax on the money that I am paying them out

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