How Can I Get Refinance In This Situation
Hi , I purchased a rehab last August. Paid 87 spent about 8 grand and rented it out. Appraised at 125,000. I have had a long list of loan officers claim they could refi but have only hurt my score by pulling my credit. Have used my credit cards a lot and that has lowerd my score along with self employment and need for stated income. Does anyone know any good secand mortgage lenders of credit card payoff loans . I can not get my score up unless the credit cards are paid off and some accounts closed. Then I can refi and I will have 100 K available to me from original lender again. Jim
Closing your credit card accounts after payoff will hurt your score. Leave them open, and just cut them up. Seconds are way hard to get if your credit isn't great, especially on Non Owner Occ. Why dont you just get a HELOC 1st mortgage and use the equity to pay off the credit cards?
Hi. What is Heloc. I would like to refi and pay off. Score is about 570 now. Dropped from 690 last fall. House was listed for a short time before I rented it. (bad advise from a realtor). I have a hard time with all the underlying factors. Staed income, no seasoning. Low score. Non owner occupied. Can this be done. House will appraise at 125, at least and I need 10 to 15 K out. Would settle for paying off note of 103,500 though. Jim
HELOC stands for Home Equity Line Of Credit.
IMO, I think it will be next to impossible to get a second mortgage with your situation. Your first mortgage alone is about 82% of the value of the home, and most non-owner occ. (whether first or second mortgages) will only allow 90% LTV max.
I think your best bet is to see if someone can get you an interest-only LIBOR adjustable rate 1st mortgage. This, in turn, will free up cash flow, and allow you to start paying down the credit cards to build your score back up. Through using the score simulator on myFico, I think the balances on your cards are what is killing your score. Pay them down, get back to around a 650 score, and then refi.
I believe this is probably the approach a financial planner would take. These guys love ARM's.
Really, this is the only thing I can come up with, next to selling personal effects on eBay to pay down the credit cards
Hope this helps!
Quote:Thanks Justin. Jim. Yes balances are killing me.
On 2004-04-02 10:11, SSJustin wrote:
HELOC stands for Home Equity Line Of Credit.
IMO, I think it will be next to impossible to get a second mortgage with your situation. Your first mortgage alone is about 82% of the value of the home, and most non-owner occ. (whether first or second mortgages) will only allow 90% LTV max.
I think your best bet is to see if someone can get you an interest-only LIBOR adjustable rate 1st mortgage. This, in turn, will free up cash flow, and allow you to start paying down the credit cards to build your score back up. Through using the score simulator on myFico, I think the balances on your cards are what is killing your score. Pay them down, get back to around a 650 score, and then refi.
I believe this is probably the approach a financial planner would take. These guys love ARM's.
Really, this is the only thing I can come up with, next to selling personal effects on eBay to pay down the credit cards
Hope this helps!