Posted on: 31st Jul, 2009 05:04 pm
i would love to refinance with the low rates but to meet obama's refinance qualifications it needs to be 105% ltv? i owe 143,000 my bank says that my house needs to appraise for 155,000. comparable homes in my neighborhood are asking 144,000.
i'm scratching at the walls for solutions and through my research have discovered the usda rural development loan program (michigan). i qualify financially and with the location but as far as i can tell i can't refinance from a conventional loan to the usda rd loan. do you know if there have been any updates regarding the guidelines? i also learned that to take advantage of this loan i cannot currently own a home. i'm not very confident that i could sell my home or i would. it seems that i would benefit but right now i'm stuck in the middle. i have excellent credit and have never missed a payment.
i wish my lender or i knew of this loan 7 years ago!
i appreciate any help that you have to offer:)----shelly
i'm scratching at the walls for solutions and through my research have discovered the usda rural development loan program (michigan). i qualify financially and with the location but as far as i can tell i can't refinance from a conventional loan to the usda rd loan. do you know if there have been any updates regarding the guidelines? i also learned that to take advantage of this loan i cannot currently own a home. i'm not very confident that i could sell my home or i would. it seems that i would benefit but right now i'm stuck in the middle. i have excellent credit and have never missed a payment.
i wish my lender or i knew of this loan 7 years ago!
i appreciate any help that you have to offer:)----shelly
Hi sjperrini,
The LTV limit for Home Affordable Refinance program has been raised from 105% to 125% to expand the reach of the assistance to more homeowners. This means even if you are 125% underwater on your property, you can still qualify for Home Affordable Refinance Program and take advantage of the low interest rates.
As far as USDA loans are concerned, what I know is that you cannot get an USDA loan if you have the eligibility to qualify for a conventional loan. So, this could make refinancing from a conventional loan to an USDA loan difficult. However, if you are going to purchase a new house, you need to make it your primary residence in order to qualify for the USDA loan.
If you have excellent credit and have never missed a payment on your existing loan, you could refinance with an FHA loan. The interest rates on FHA loans are quite low. But as your current property is underwater, qualifying for an FHA loan would not be possible. I think Home Affordable Refinance with up to 125% LTV, seems to be the best solution in your situation.
The LTV limit for Home Affordable Refinance program has been raised from 105% to 125% to expand the reach of the assistance to more homeowners. This means even if you are 125% underwater on your property, you can still qualify for Home Affordable Refinance Program and take advantage of the low interest rates.
As far as USDA loans are concerned, what I know is that you cannot get an USDA loan if you have the eligibility to qualify for a conventional loan. So, this could make refinancing from a conventional loan to an USDA loan difficult. However, if you are going to purchase a new house, you need to make it your primary residence in order to qualify for the USDA loan.
If you have excellent credit and have never missed a payment on your existing loan, you could refinance with an FHA loan. The interest rates on FHA loans are quite low. But as your current property is underwater, qualifying for an FHA loan would not be possible. I think Home Affordable Refinance with up to 125% LTV, seems to be the best solution in your situation.
Thank You soooo much for the feedback! I didn't know about the percentage increase for the home affordable plan. Wow! I was in contact with my bank only one month ago! How things can change:) Thanks again, I truly appreciate the time you've taken to respond.