In years past, it was very common to p/o revolving debt thru a refinance and exclude the monthly payment from DTI. However, lending guidelines have become more conservative since the meltdown. Most lenders discontinued the practice and now require the payments to be included in the DTI calculation.I was able to find a workaround last year for a client in a similar situation. We got the borrower qualified/funded by providing Closed Letters from the revolving debt creditors BEFORE funding. By providing the Closed Letters, we were able to exclude the monthly payments from the DTI, fund the loan, and then dispersed checks to the borrower to payoff the 3 accounts totaling 33k.Granted that was last year and guidelines seem to change daily, but it might still be possible. Check around and good luck, cheers!
Per FHA guidelines:FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower's principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.There are also exceptions to the rule (e.g., job transfer). Tax credits are a different story - contact your tax adviser! Hope this helps, cheers!
I recommend running a simple break even analysis. Calculate the difference in payments b/t the two options vs the cost of the loan. That will tell you how many months it will take to "recoup" the loan fees from your monthly savings. Then make your decision based on your holding timeline for the new loan. Make sense??
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Hey Jean - It really depends on the property, but typically private lenders require a 9%+ rate to make the investment worth the risk. Ask yourself, would you lend $XXX,XXX for a measly 6% or less return??? I wouldn't!zap
East answer - PAY OFF YOUR CREDIT CARD DEBT!
Again, I agree with Wayne and wish the real estate agents on this site would keep to their day job! Per my underwriter:A recent graduate is acceptable with transcripts and a diploma . We still need a 2 year history , but it can be a combination of school and work .Hope this helps, cheers!zap
I concur with Wayne and baffled by the other remarks below! Talk to your loan officer and he/she will be able to tell you exactly what's required to close.All the best, cheers!zap
Hi - Most lenders have specific guidelines regarding loan mods reporting on a credit report. When did you finalize the loan mod?zap
Hi - Based on the info u provided and my assumptions below, u would need approx $2,800 monthly income to qualify for a cash-out refinance.Assumptions:LTV: 80%Debt-To-Income: 45%Property Taxes: $200/mHomeowners Insurance: $50/mRate: 4.25% (based on FICO and scenario)NO OTHER MONTHLY DEBT OBLIGATIONS (e.g., auto payments, student loans, credit cards, etc.)Let me know if you have any questions, cheers!zap