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Denied making home affordable refinance due to prepaid PMI

We were denied a refinance under the making home affordable act with Bank of America a couple of months ago due to the fact that our builder pre-paid PMI for us when we bought the house in 2008. Is this in fact the current rule or is BOA giving us a line and if it is in fact accurate any idea on when this rule may change? Our LTV is roughly 95% at the present time.

  • March 20 2010 - US
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Answers (4)

Unfortunately they are correct.  Loans with MI are not allowed under the program guidelines to the best of my knowledge.

Check around to be sure and it may make sense for you to look into an FHA refinance although you will have upfront and monthly MI on that loan as well.
  • March 23 2010
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Kind of ironic isn't it?   
  • March 21 2010
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It is likely a credit overlay for Bank of America.  I would try other lenders.  Wells Fargo may be an option for you.
  • March 21 2010
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To my knowledge, what BOA told you sounds right.  I'm not familiar with any loans with MI (prepaid or mothly) being refinanced under the MHA guidelines. 
  • March 20 2010
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