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Underwater refi options, FHA (VHDA)

Hi all,

I'm currently underwater on my loan; mortgage is ~162000, house Zestimate is 132,400. 

I'm looking for options on refinancing to get a lower monthly payment. Current rate is 6%, on an FHA loan that I got through VHDA.

Do I have any options that would get me a lower interest rate/lower monthly payments? 

EDIT: Monthly payment is about $1280 total.

Thanks in advance!
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February 27 2012 - Richmond
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Answers (12)

too busy campaigning; yes June 12th or later.
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March 11 2012
The prez makes a good point, you will qualify for the modified annual mortgage insurance factors which will be very close to your current loan, and almost no UFMIP if you wait. I think he meant June 12 though :).
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March 11 2012
wait until after July 12th then do an FHA streamline refinance, no appraisal..

If you have some type of community 2nd; often they will not subordinate meaning you''d have to pay if off (cash).
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March 11 2012
Hi,

Your home is underwater enough you may qualify for the Principal Reduction Alternative Loan Mod,  You should call your servicer and ask if they are participating in that program.  

Criteria:

First loan needs to be 115% underwater or more
Loan needs to be originated on or before 1/1/09
and your first mortgage payment principal interest taxes and insurance and hoa  needs to be greater than 31% of your gross income. 

The servicer needs to be able to reduce your payment by at least 6% (10% on some loans) .

Example:

Income  $3500 x 31%  = $1085 (should be fully amortized)
    1280 - 6% $73.00

$1207  - $1085  is a savings of 10% so you may qualify for this program.



$3500  x 31%  $1085  So if your income is approximately $3500 or below you may qualify.  If your income is above $4500 would not qualify under traditional HAMP guidelines but may qualify under the new HAMP Tier 2 program.  

Additionally, the servicer will only look at income of those applicants on the loan... 

You may be able to do the PRA Loan mod depending on your income. 

The goal here is to reduce the loan / payment to get you to 31% of your gross income.

HAMP Just announced their Tier 2 loan mod and they (MAY) be able to get your new payment down to 25% of your gross income, most likely will take a few months to roll out. 

** You can be current on your payment to qualify but need to be in Iminent Default, meaning you can not have more than 3 months worth of savings readily available in a liquid account. 


You should find out what your net present value is and call an attorney in your state to see if they can help you.  

Hope that information is helpful=... and not too confusing.

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March 11 2012
You can refinance on a streamline / no appraisal even if you owed $250K and the value was $50K. That refi will not allow any closing costs or prepaids to be added to the loan amount so a rate around 4.125%-4.25% will pay a large lenders credit paying the closing fees and maybe some of the escrow depending on how much you can pay at closing. You can structure it to be a cash flow wash since you will be reimbursed whatever is in your escrow acct now and not make a payment for 1 month. Yes, you can refinance with any HUD approved Lender or Broker.
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March 11 2012
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I think I financed 100%, and rolled in whatever closing costs I could. :P I'll check the documents. So this is possible if I'm underwater? I'm completely unfamiliar with the process, so forgive the questions, but can I refinance through another lender if VHDA doesn't refinance?
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March 11 2012
If you received cash for paying closing costs or to enhance the down payment when you bought, then there may be verbiage in your documents addressing that if refinancing. Have you read all your documents? If that is not a factor then you should be able to do a streamline / no appraisal if other FHA Lender requirements are met.
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March 11 2012
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Bought house in 2007. I am current on payments. VHDA owns the loan, and they don't do refinances. Is the streamline refi a possibility still? Can I do that with a different lender, or is there any other options? Thanks for the advice!
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March 11 2012
You may be able to do an FHA Streamline refi.

This will not reduce your loan balance but should reduce your rate.

No appraisal necessary. 

You have to be current on your payments. 

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March 09 2012
You can do a streamline / no appraisal. When did you buy the home?
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March 09 2012
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Sorry for delay, didn't get a notification!

I just have a first mortgage on the home.
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March 09 2012
Did you get a first and second mortgage ( FHA Plus ) or just a first mortgage?   
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February 27 2012
 
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