Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for user7709630

Having trouble refinancing.

I am self-employed so no W2 this past year. I have talked to some lenders but they said nothing can be done since my credit score 678.

Loan balance: 681k
monthly payment: 4195
interest rate: 5.75
last refinanced: April 2010, int rate went from 7% to 5.75% harp program which is why I no longer qualify for harp.
home value: 1.2m

Should I just wait until my company turns around so I can take a w2? I am assuming in a 3-5 years.
  • January 08 2014 - Los Angeles
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (8)

Hello,

There is an alternate documentation loan available which calculates your income based on cash flow vs. the typical tax return. There's a few details we would have to go over but I would think this is your best bet.

Good luck!
  • January 22 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for frankc45
You are right on the cusp of getting a better rate if you had a 680+ score. If you have high balances or even 50% of credit used on credit card accts, pay it down to 25% or less and it may rise above that in two months. Having said that, there are still some lenders who will entertain a low loan-to-value which you have in L.A. county.
  • January 21 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hello,

A few questions that can answer this quickly -

1) How long has your business been active, and are you filing a schedule C with your tax return?

2) What is your net bottom line of income for the last 2 years of filed taxes?

It is likely you can refinance right now, and with many attractive options available to you.

Best of luck!

Eric Nelson, III
Sr. Mortgage Planner
SVC Funding
www.campbellmortgagebroker.com
408-268-2442
NMLS # 120412
CA BRE # 01258488
  • January 16 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Your credit score is still acceptable with other lenders. The important thing to understand is that not all lenders are the same. Different lenders have different standards and requirements. So I wouldn't give up yet, instead check out multiple lenders. There should be a lender like myself that would be able to work with those scores. Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on refinancing with your situation. There are lenders like myself that would be glad to speak with you to help you get the refinancing that you need. There would only be a few more details needed to sort out your situation. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CA Direct Lending
If your average income over the past two years is sufficient, your credit score is not that low and should not be a hurdle.  We have a lender who has no problem with a 678 credit score.
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you owned the business for over 2 years?  If so, we can assist despite the credit scores below 700.

Feel free to click on my profile and contact me directly so we can discuss which options are available.

Best,

Bryan
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Based on the information you provided, the chances of you being eligible to refinance are very promising.  If you would like more information please contact me directly, good luck!
(not sure why they turned you down for a 678 FICO)
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Brian GFL Capital
self employed income will be a two year average of your taxes. as long as there is sufficient income there it shouldn't matter if you get a W2 or 1099

credit may be your biggest hurdle since the high balance/jumbo loan amount products require a 700+ credit score through most lenders
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.