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Refinance balance + equity to pay bills @ 90% LTV?

I currently have a FHA from late 2009 original loan was 270k currently owe 250k.  House is appraised at 335k , FICO ~680, income over $100k DTI < 30%.  A company I called (legit) says that I can refinance my FHA loan into a conventional loan @ 5.125% APR with cash back to pay bills but only up to 75% LTV ($251k), which leaves nothing for closing costs nor for paying towards bills. Ideally I'm looking for someone who can do the same but up to 90% LTV and NO MIPS, that will give me ~$300k ($250k refinance plus $50k for bills and closing costs) yet meeting or lower than 5.125% APR and less than $2500 in fees.   Please let me know if you can provide such a product.
  • July 11 2013 - Brookfield
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Answers (6)

Best Answer

Finding a 90% LTV for cash-out refinance with no MI will be difficult. I think the best you will likely see is 85% with MI on a Conventional or FHA with MIP.

Since it appears that you already have the equity necessary to get out of the current FHA loan, why not consider refinancing into a conventional up to 80% LTV cash-out. You won't get a lot of cash back, but it's something. You could also look to add a HELOC, but be careful because your score may not be high enough.
  • July 11 2013
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Cashing out to 85% will most likely be the maximum.  Although your credit sscore is not bad, I dont know if the MIP companies will offer LPMI (lender ppaid mortgage insurance) with that score.  Something to look into.  Obtaining a 2nd mortgage might be a challenge as well at that score.

  • August 06 2013
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I agree with Barb & Mark.  TCF& PNC both have nice credit line options.  I would also look at doing something with little or no closing cost.  Market conditions may improve and give you better options down the road and avoiding closing cost now will make it easier to take advantage of those opportunities.
  • August 05 2013
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Along the lines of what Barb is saying.  My guess is a rate and term refinance with a HELOC will be the best option.  We can go to 89.9% on the HELOC but it would need to be done on a 2 step process or if simultaneous closing 85% LTV..
  • July 18 2013
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Unfortunately, I am not a veteran.
  • July 11 2013
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Are you a Veteran? If so give that a try. The VA loan I mean. They will allow 100%, although lenders will only allow around 90%. Given your numbers, that should get you close.
  • July 11 2013
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