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Good credit and payment history, poor income ratios

My wife and I have been looking to refinance to a lower interest rate (currently 6.5%) so we could lower our monthly payments. We are having a hard time finding a lender because our income has been reduced from when we got the original loan.  We have good credit and an excellent payment history but I am now self employed and do not have the income yet to satisfy most lenders gross debt-to-income ratio.  Are there any lenders out there that consider the fact that we have been making our payments with a high mortgage payment and should be able to make it easier with a lower monthly payment?
  • August 23 2012 - Bel Air
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Answers (2)

Most lenders will follow the Fannie Mae/Freddie Mac guidelines and past a certain point, outstanding credit and payment history cannot overcome high debt-to-income ratio.  You may want to find a smaller institution--a credit union, perhaps, who does not sell their loans and who can make exceptions. 
  • August 23 2012
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Call around to several lenders. Especially the smaller ones not associated with the big banks.  If they cannot do it, they are still the best people to give you advice on the steps to take and how long they will think it take for you to achieve.  Good luck!
  • August 23 2012
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