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What can I do to get more (or better) quotes for my loan request ZR-PTTTVPM

I submitted a refinance loan request for a rental property in Meridian, Idaho. Loan amount $140,000. LTV is 94% (or I will make a down payment to keep it under 95%), and my current mortgage is a 30-yr fixed loan with Freddie Mac, originated in 2006 at 6.75%. Until last year, I was employed full-time and my last full-time position was as a Director at Microsoft paying $15,000/month. For last 1 year, both my and my wife are self-employed as IT Consultants. My wife has been working at the same company for last 1 year and we can submit her paystubs to show consistent proof of income of approx. $11,000/month.

I have not received any quote yet so looking for advice here.
  • May 24 2010 - Meridian
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Answers (4)

It is possible to refinance up to 105% on the Freddie Mac Open Access program. As long as your original loan did not have mortgage insurance.
But like most things, the devil is in the details. It's done through and automated underwriting process. The main factors are going to be, your credit score, savings/reserves, income and actual appraised value.
The recent change in employment status may be the biggest hurdle in this scenario but still possible. It doesn't cost anything to find out one way or the other and rates are very good. An actual quote here requires lots of additional disclosure due to new regulations and is not practical. I think it is safe to say that if everything fits, you'll see a 1% + reduction over your current rate.
Let me know if you have any questions.
Thanks,
John Robson
  • May 24 2010
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Typically, lenders are requiring 80% LTV on non owner occupied properties.  I do have a lender checking on special programs for refi's Freddie Mac properties.  He is looking into a DU Refi Plus program for you.


Best of luck.
Jim Paulson
Owner/Broker
Progessive Realty Corp.
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  • May 24 2010
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Based on the Loan-to-Value (LTV) your loan is out of Freddie and Fannie's normal guidelines.  We many be able to do an "Open Access" loan for you which is an expansion to their guidelines and part of the Federal Gov't programs to assist homeowners that have lost equity in their homes and investment properties.  Running your loan application through their automated underwriting system is the only way to tell if you are qualified.

Employment may be another hurdle that we need to jump over.  Self-employment requires 2 yrs (very little leeway on this subject).  Is your wife paid W-2 or 1099?  I have several clients that have worked contract for  years at IT companies but receive a regular paystub.

Let me know how I can help.  I am licensed in Idaho.

Thanks, Curt
  • May 24 2010
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Hi barterback,

The maximum LTV on an investment property rate & terms refinance is 75% (ouch). A rate estimate is 5.375% without knowing more about your FICOs. The self-employed for less than two years might be an issue, an automated underwriting decision could only require one year.

Regards - Dean
  • May 24 2010
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