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

can fha streamline refinance be rejected because there are no interested investors?

Details: existing loan is 203k(rehab) fha loan endorsed 9/2009. original appraisal 174,000. remaining balance 128,000. Current rate 5.5% 30yr. Refinancing through new lender discover home loans. terms: 15 year 2.75% rate with 1.375% rebate from lender. so no cost fha streamline refi. never missed a payment. middle creditjj score 811. income 70k/yr. credit cards paid in full every month. reason the underwriter rejeced was that there are no investors intetested in a fha streamline refi from 203k fha rehab loan. this doesn't make sense as the new loan is what they would invest in im trying to do this loan for the lower rate and no monthly mip. also payments would decrease by at least 5%..
  • October 15 2012 - Chesapeake
  • 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)

Go back to your original 203k lender. They should be able to help you. We do not offer 203k streamlines either, and I am guessing these lenders are concerned with value after repairs.
Best wishes, Jim
  • October 17 2012
  • 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 MudraBuild
[Website removed by Zillow moderator. Please see ourGood Neighbor Policy.]
  • October 17 2012
  • 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 azyuan
Sorry wasn't clear i meant no monthly mip. refi at 15yr with ltv would require no monthly mip. just up front 1.75%.
  • October 16 2012
  • 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 Go Huskers
"this doesn't make sense as the new loan is what they would invest in im trying to do this loan for the lower rate and no monthly mip."
___

Who told you that there would be "no monthly mip"?
  • October 16 2012
  • 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 azyuan
yeah with new appraisal the ltv would most likely not be enough for a conventional loan with no pmi.  New appraisal would probably be around 150k to 160k. FHA streamline would get me out of appraisal.
  • October 16 2012
  • 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.

With your LTV that low, there is no reason to stick with FHA, it makes much more sense to refi out of FHA and remove monthly MIP.
Good luck, Jim

  • October 16 2012
  • 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.

I have never heard of that, use a direct FHA endorsed lender and you should be fine. Go back to the loan officer who gave you the loan it's probably the best idea. Also consider an appraisal if its at 80% loan to value.
  • October 16 2012
  • 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 azyuan
By the way property is in va. original loan amount 156,000
  • October 15 2012
  • 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.