I need to refinance a 5th 4plex to pay my father-in-law back the cash he used to buy this 4plex but I now have 5 fannie/freddie loans. Any ideas? What kind of rates are you seeing for non-conforming loans?
I have several lenders that will refinance you with (5) 4-plexes. But the going rate for investor property is 1 or 2 points what you are currently paying.
Check with other lenders they can go up to 10 units but most will take up to 6 units.
Also there is a new form out there that is required. In refinancing the new lender is asking what real purpose does this refinance serve. The form has different names in different states but the same basic idea. Why are you refinancing and what do you intend to receive as a result for it.
Since you want cash out the terms and conditions will be greater than a rate and term refinance. Watch your step.
As a loan officer I am real careful on refinances with cash out.
[addsig]
If you are paying off anyone it is considered cash out and you will be strictly underwritten.
The lender takes on the duty to see if you are refinancing to get of the property and some point like not making the payments in the future. The underwriters have blinders on so make sure your loan officer tells a good honest story.
Having only five financed properties does not put you into the non-conforming loan category. You need to have ten financed properties before you need a non-conforming loan.
Provided you are only refinancing whatever is needed to pay off an existing lien, your refinance is a "rate and term" refinance and not a cash out refinance.
Maverickstar may have assumed the property had no recorded liens, in which case the refinance would be a cash out refinance.[ Edited by NewKidInTown3 on Date 12/03/2009 ]
You are not limited to local lenders. Try a national lender such as Wells Fargo or Bank of America. You may even be able to go online and make a loan application with their national loan center.
Or, try one of those online placement services such as www.LendingTree.com, www.mortgage.nexttag.com, www.Quickenloans.com, etc.
Or, try one of those internet based corresponding lenders such as www.goodmortgage.com.
Rate and Term means no or very little under $2000 cash back. If you are paying off the person who is on title with you then that is cash back refinance.
If he is the current lender then paying him off as the lender is Rate and Term. Do you see the difference???
Here is how I read the question. zcovey has title as sole owner, His father-in-law gave zcovey an unsecured loan to finance the purchase. The father-in-law will secure his loan with a lien on the property (might even be a second lien). zcovey will then refinance the property to pay off his lien holder(s).
The assumption here is that zcovey is only trying to refinance the total lien amount and is not seeking to take any additional cash out of his equity.
zcovey can even roll the closing costs and loan fees into the loan amount and still have a rate and term refinance. Additionally, zcovey can get up to $2000 cash out refinance and still have this loan underwritten on as a rate and term refinance loan.
There was nothing in the original question or in the subsequent discussion to conclude that the father-in-law is a co-owner. zcovey said nothing about getting his father-in-law off the deed, but simply wanted to repay the father-in-law for the loan he received to purchase the property.
Yes, I completely understand the difference between a rate and term and cash out refinance. Now, that you see the context in which I am answering the question, maybe you will agree with my response.
I am perfectly willing to amend my response if any of my facts and assumptions are incorrect.[ Edited by NewKidInTown3 on Date 12/05/2009 ]
i just check my credit report at equfax 544 exp 0 tran 0 i have been working on my report they have deleted so much off my report now i dont have a scores at two of the credit beu,i am leasing to own the house i am in been paying 750 on time for nine months dont know while my scores did go up
Rental history can be reported to your report however it will not have any bearing on your score. You will be able to use it as rental history when you aply for a home loan however again.... you need possitive credit to obtain scores. And you are welcome.
Quote:
On 2010-01-07 13:07, coolchild22 wrote:
tnank you so much for the information, can the restate company report our rent history to credit beu.
mcole is correct. If you need to open credit card accounts, make sure you compare them. Variables vs fixed vs introductory rates. What the rates will be after the introductory period, annual fees etc. A friend of mine that works at a local bank told me three credit cards with history is the most you need on your credit report.
my father in law has an 850, he gets no better rates than me with a 780. it does not make a difference. if you are paying high interest with a 790 then you are shopping at the wrong places.
good luck
also take a look at "creditboards" fico scoring
[addsig]
You will probably come out better by going on an apporama, that is applying for a bunch of new credit cards in 1 or 2 days. I did 15 applications and recieved 12 new credit card in one day because I had an early start. My score drop about 30 points, but had completely recovered within 6 months.
You are right. -- Ask them if you are eligible for an increase without a credit pull. Oftentimes there is an autoincrease (usually small) based on your history with them. Not all companies work the same. Always ask.
I’m so mad I could just spit. I went to Ed Jones a little while back; saw a sign about how they could make loans so I ask about it. First thing they do, without asking me anything is pull a credit report on me. I didn’t want a loan; I just wanted to know how their process worked in case I did want to try for a loan at a later date. Today (6-14-08) I received two letters from Ed Jones, one concerning Experian and one concerning Trans Union. The one concerning Experian Gave me a credit score of 774. Note that on Feb 11, 08 just 4 months ago Experian gave me a credit score of 883. I still have their letter. I haven’t taken out any loans, got any credit cards or anything, just paid my bills like I always do. However I did close a card I had for Auto sales. I had only used them one time about 4 years ago. Would this have dropped my credit score 99 points? Experian provided the following as their key factors in determining my score. 1. Amount owed on accounts is too high (Too high compared to what???) 2. Proportion of balances to credit limits on revolving accounts too high. (I pay my CC’s off in full end of each month) 3. Length of credit history too short. (I have had my cards for several years and my bank loan since 1992). Trans Union gave the same score and the same 3 reasons. I didn’t understand just what they were telling me so I went to http://www.mycreditscorereview.com/ to read up on credit score terminology.
Like I said – I’m so mad I could just spit. I don’t need a high credit score except to get lower rates on whatever I get rates on. Monday, me and the Ed Jones guy is going to have a serious talk. Then the credit card companies are going to be next. I know I won’t get anywhere with the CC companies but at least they will know who I am. Sorry for venting but this credit card thing is just something we have no control over (other than pay our bills in full each moth – which I do) and can’t find out anything about how to deal with them. I’m having a hard time finding out just why I need them.
Your credit score of 883 was doubtless a typo, as the maximum score is 850. Perhaps the reality was 783, in which case it has only gone down a few points.
NewKid Thanks for the input. However, I don’t think I will pull my own credit report. It doesn’t mean that much to me. It just made me mad that they can play with our lives as they do and we can’t do “nutten” much about it.
Ypochris. After some other input I had thought it might be a typo. However the 883 did look good for a while. I wonder just how many other typos they make on people’s reports who are concerned about their score and do need a higher score. I just don’t use credit for much except for the daily activities like at gas stations and a few other small things. I’m done making post about this for now. But I am still going to talk to Ed Jones and the CC company.
Well one of the greatest forms of confusion when it comes to credit is what "score" you are looking at or comparing. A score is basically a model put together by a business that rates the information in your credit file and outputs a number.
And as we know - ALL THINGS ARE NOT CREATED EQUAL!
It is possible you had an 883 depending on the model. Empirica scores, created by Transunion, ranges from 150 to 934. Beacon scores, created by Equifax, ranges from 340 to 820. Fair Issac, created by Experian goes from 330 to 830.
The main score that is most commonly used though today is the FICO score which ranges from 300 to 850. The crazy thing is that any of these (4) models can be applied to any of your (3) credit reports at the exact same time and you will come up with 12 different credit scores.
The thing to remember is that the lender (CC company, bank, mortgage broker, etc) come up with the model they like, either provided to them like FICO or their own version and score you according. So really your credit scores are ENDLESS with the number of models that can be created out there.
I have a couple of credit cards that give me my monthly score from TransUnion and I have had my credit monitoring service report my scores on the same day for the same CRA and the scores are sometimes 40 points away from each other. (They obviously use different scoring models)
The only thing that is somewhat constant is the information that is provided by the 3 Credit Organizations. One lender can score your inquiry by Ed as a -50 points on your credit as you are looking for new credit and the next lender scores it as a -5 as it feels you are just shopping for the best loan around.
There is no sanity with credit scores and if you are using anything but a FICO score, you are way off on what your score really is in most lenders eyes.
I say we find an class action "ambulace chaser" & file a class action suit against the credit scoring companies forcing them to disclosue or provide accurate tool for decoding a credit score is what it is.
How can something be held against you, but you have no way of knowing how to fix it?
Fair Issac, created by Experian goes from 330 to 830.
The main score that is most commonly used though today is the FICO score which ranges from 300 to 850.
dnvrkid,
The FICO credit scoring model was created by Fair Isaac Corporation, not by Experian. FICO, in fact, is the acroynm for Fair Isaac Corporation. The FICO score ranges from 300 to 850.
All three credit reporting agencies use FICO scores. The reason you might have a different FICO score with Experian than you have with Transunion is that each agency may have different information in your credit file. FICO returns a score based upon the information contained in the credit file submitted by the credit agency,
It is true that the agencies may have their own credit scoring models that will give scores different from the FICO scoring model. But, there is only one FICO scoring model, and all three credit agencies use it.
Lenders will base their credit decisions on the FICO score in preference to other scoring models.
My understanding is that opening up new revolving lines of credit will hurt your credit initially, and potentially long term. That is, the available credit to debt ratio that you want to improve will not really take effect if you open up several lines of revolving credit and do not make any charges on them. You would have to make some charges on them and then pay them back to make them count for anything.
Installment loans rank higher than revolving lines of credit. Therefore, you would probably be more likely to achieve a higher credit score with an installment loan of some kind...say a home equity line of credit or personal loan.
I have several lenders that will refinance you with (5) 4-plexes. But the going rate for investor property is 1 or 2 points what you are currently paying.
Check with other lenders they can go up to 10 units but most will take up to 6 units.
Also there is a new form out there that is required. In refinancing the new lender is asking what real purpose does this refinance serve. The form has different names in different states but the same basic idea. Why are you refinancing and what do you intend to receive as a result for it.
Since you want cash out the terms and conditions will be greater than a rate and term refinance. Watch your step.
As a loan officer I am real careful on refinances with cash out.
[addsig]
My father-in-law is recording the note. So would this still be considered a cash out refi?
If you are paying off anyone it is considered cash out and you will be strictly underwritten.
The lender takes on the duty to see if you are refinancing to get of the property and some point like not making the payments in the future. The underwriters have blinders on so make sure your loan officer tells a good honest story.
Having only five financed properties does not put you into the non-conforming loan category. You need to have ten financed properties before you need a non-conforming loan.
Provided you are only refinancing whatever is needed to pay off an existing lien, your refinance is a "rate and term" refinance and not a cash out refinance.
Maverickstar may have assumed the property had no recorded liens, in which case the refinance would be a cash out refinance.[ Edited by NewKidInTown3 on Date 12/03/2009 ]
You are not limited to local lenders. Try a national lender such as Wells Fargo or Bank of America. You may even be able to go online and make a loan application with their national loan center.
Or, try one of those online placement services such as www.LendingTree.com, www.mortgage.nexttag.com, www.Quickenloans.com, etc.
Or, try one of those internet based corresponding lenders such as www.goodmortgage.com.
Rate and Term means no or very little under $2000 cash back. If you are paying off the person who is on title with you then that is cash back refinance.
If he is the current lender then paying him off as the lender is Rate and Term. Do you see the difference???
maverick,
Here is how I read the question. zcovey has title as sole owner, His father-in-law gave zcovey an unsecured loan to finance the purchase. The father-in-law will secure his loan with a lien on the property (might even be a second lien). zcovey will then refinance the property to pay off his lien holder(s).
The assumption here is that zcovey is only trying to refinance the total lien amount and is not seeking to take any additional cash out of his equity.
zcovey can even roll the closing costs and loan fees into the loan amount and still have a rate and term refinance. Additionally, zcovey can get up to $2000 cash out refinance and still have this loan underwritten on as a rate and term refinance loan.
There was nothing in the original question or in the subsequent discussion to conclude that the father-in-law is a co-owner. zcovey said nothing about getting his father-in-law off the deed, but simply wanted to repay the father-in-law for the loan he received to purchase the property.
Yes, I completely understand the difference between a rate and term and cash out refinance. Now, that you see the context in which I am answering the question, maybe you will agree with my response.
I am perfectly willing to amend my response if any of my facts and assumptions are incorrect.[ Edited by NewKidInTown3 on Date 12/05/2009 ]
i just check my credit report at equfax 544 exp 0 tran 0 i have been working on my report they have deleted so much off my report now i dont have a scores at two of the credit beu,i am leasing to own the house i am in been paying 750 on time for nine months dont know while my scores did go up
leasing to own do not show up on credit report,been paying on time every month never miss a payment
tnank you so much for the information, can the restate company report our rent history to credit beu.
Rental history can be reported to your report however it will not have any bearing on your score. You will be able to use it as rental history when you aply for a home loan however again.... you need possitive credit to obtain scores. And you are welcome.
Quote:
On 2010-01-07 13:07, coolchild22 wrote:
tnank you so much for the information, can the restate company report our rent history to credit beu.
i will be calling you soon
we have paid credit repair company to help us they did do very much so we work on our own credit report got a lot of thing del off our files
I look forward to speaking with you.
Bottom line....that will not help your credit. Pay your bills on time....that will help the most.
Why?
why not? u like paying high interest rates on your loans?
It seems to me that 720+ will get you the best available rates.
There must be more profitable ways to spend your time than striving for a 800+ credit score.
Just my $.02.
[addsig]
What are the lowest and highest possible scores?
mcole is correct. If you need to open credit card accounts, make sure you compare them. Variables vs fixed vs introductory rates. What the rates will be after the introductory period, annual fees etc. A friend of mine that works at a local bank told me three credit cards with history is the most you need on your credit report.
my father in law has an 850, he gets no better rates than me with a 780. it does not make a difference. if you are paying high interest with a 790 then you are shopping at the wrong places.
good luck
also take a look at "creditboards" fico scoring
[addsig]
Have you considered asking for a credit increase on your existing cards? This would bring your debt ratio down and you still have the history (time)
Good luck!
You will probably come out better by going on an apporama, that is applying for a bunch of new credit cards in 1 or 2 days. I did 15 applications and recieved 12 new credit card in one day because I had an early start. My score drop about 30 points, but had completely recovered within 6 months.
jomel,
In the long run, this hurts you more than it helps you.
You are right. -- Ask them if you are eligible for an increase without a credit pull. Oftentimes there is an autoincrease (usually small) based on your history with them. Not all companies work the same. Always ask.
I’m so mad I could just spit. I went to Ed Jones a little while back; saw a sign about how they could make loans so I ask about it. First thing they do, without asking me anything is pull a credit report on me. I didn’t want a loan; I just wanted to know how their process worked in case I did want to try for a loan at a later date. Today (6-14-08) I received two letters from Ed Jones, one concerning Experian and one concerning Trans Union. The one concerning Experian Gave me a credit score of 774. Note that on Feb 11, 08 just 4 months ago Experian gave me a credit score of 883. I still have their letter. I haven’t taken out any loans, got any credit cards or anything, just paid my bills like I always do. However I did close a card I had for Auto sales. I had only used them one time about 4 years ago. Would this have dropped my credit score 99 points? Experian provided the following as their key factors in determining my score. 1. Amount owed on accounts is too high (Too high compared to what???) 2. Proportion of balances to credit limits on revolving accounts too high. (I pay my CC’s off in full end of each month) 3. Length of credit history too short. (I have had my cards for several years and my bank loan since 1992). Trans Union gave the same score and the same 3 reasons. I didn’t understand just what they were telling me so I went to http://www.mycreditscorereview.com/ to read up on credit score terminology.
Like I said – I’m so mad I could just spit. I don’t need a high credit score except to get lower rates on whatever I get rates on. Monday, me and the Ed Jones guy is going to have a serious talk. Then the credit card companies are going to be next. I know I won’t get anywhere with the CC companies but at least they will know who I am. Sorry for venting but this credit card thing is just something we have no control over (other than pay our bills in full each moth – which I do) and can’t find out anything about how to deal with them. I’m having a hard time finding out just why I need them.
Haynesm,
Your credit score of 883 was doubtless a typo, as the maximum score is 850. Perhaps the reality was 783, in which case it has only gone down a few points.
Chris
NewKid Thanks for the input. However, I don’t think I will pull my own credit report. It doesn’t mean that much to me. It just made me mad that they can play with our lives as they do and we can’t do “nutten” much about it.
Ypochris. After some other input I had thought it might be a typo. However the 883 did look good for a while. I wonder just how many other typos they make on people’s reports who are concerned about their score and do need a higher score. I just don’t use credit for much except for the daily activities like at gas stations and a few other small things. I’m done making post about this for now. But I am still going to talk to Ed Jones and the CC company.
Thank you both for your reply.
Well one of the greatest forms of confusion when it comes to credit is what "score" you are looking at or comparing. A score is basically a model put together by a business that rates the information in your credit file and outputs a number.
And as we know - ALL THINGS ARE NOT CREATED EQUAL!
It is possible you had an 883 depending on the model. Empirica scores, created by Transunion, ranges from 150 to 934. Beacon scores, created by Equifax, ranges from 340 to 820. Fair Issac, created by Experian goes from 330 to 830.
The main score that is most commonly used though today is the FICO score which ranges from 300 to 850. The crazy thing is that any of these (4) models can be applied to any of your (3) credit reports at the exact same time and you will come up with 12 different credit scores.
The thing to remember is that the lender (CC company, bank, mortgage broker, etc) come up with the model they like, either provided to them like FICO or their own version and score you according. So really your credit scores are ENDLESS with the number of models that can be created out there.
I have a couple of credit cards that give me my monthly score from TransUnion and I have had my credit monitoring service report my scores on the same day for the same CRA and the scores are sometimes 40 points away from each other. (They obviously use different scoring models)
The only thing that is somewhat constant is the information that is provided by the 3 Credit Organizations. One lender can score your inquiry by Ed as a -50 points on your credit as you are looking for new credit and the next lender scores it as a -5 as it feels you are just shopping for the best loan around.
There is no sanity with credit scores and if you are using anything but a FICO score, you are way off on what your score really is in most lenders eyes.
Good Luck.
I say we find an class action "ambulace chaser" & file a class action suit against the credit scoring companies forcing them to disclosue or provide accurate tool for decoding a credit score is what it is.
How can something be held against you, but you have no way of knowing how to fix it?
OK CJ sounds like a grand idea to me.
Quote:
On 2008-06-16 22:29, dnvrkid wrote:
Fair Issac, created by Experian goes from 330 to 830.
The main score that is most commonly used though today is the FICO score which ranges from 300 to 850.
dnvrkid,
The FICO credit scoring model was created by Fair Isaac Corporation, not by Experian. FICO, in fact, is the acroynm for Fair Isaac Corporation. The FICO score ranges from 300 to 850.
All three credit reporting agencies use FICO scores. The reason you might have a different FICO score with Experian than you have with Transunion is that each agency may have different information in your credit file. FICO returns a score based upon the information contained in the credit file submitted by the credit agency,
It is true that the agencies may have their own credit scoring models that will give scores different from the FICO scoring model. But, there is only one FICO scoring model, and all three credit agencies use it.
Lenders will base their credit decisions on the FICO score in preference to other scoring models.
If you want to download a free ebook that explains FICO in more detail, go to http://www.myfico.com/Downloads/Files/myFICO_UYFS_Booklet.pdf
760+ is the best. Below that you will pay higher rates, with even higher rates below 720.
I found this out by inquiring at the official FICO web site....
You can always add seasoned tradelines to your credit report
My understanding is that opening up new revolving lines of credit will hurt your credit initially, and potentially long term. That is, the available credit to debt ratio that you want to improve will not really take effect if you open up several lines of revolving credit and do not make any charges on them. You would have to make some charges on them and then pay them back to make them count for anything.
Installment loans rank higher than revolving lines of credit. Therefore, you would probably be more likely to achieve a higher credit score with an installment loan of some kind...say a home equity line of credit or personal loan.