I bought a house and now starting to think its a mistake because they gave me a mortgage of almost $1500 and told me I could refinance it a few months later. Well I can't get it refinanced! Does anyone know any companies that work with people in the "lower income" brackets?? I make a little over $27,000 a year and I don't have anyone else on the mortgage but me so all the mortgage companies are considering me high risk.
2006-11-17 08:37:03 · 9 answers · asked by Just Wondering 5 in Business & Finance ➔ Renting & Real Estate
That is the biggest problem in Real Estate today. You were not qualified to buy this home probably with an income of only $27,000. Were did you get a mortgage company to loan you the money for the home? Most won't. What people dont realize is that is costs money to refinance a certain percent and it can be $1,200 to $3,500 in cash to do the refinance but it does get your payments lower. But you have to quality with the new mortgage company first.
It seems your agent who sold you this home was not looking out for your best interest. You should talk to the agent and tell them you can not refianace if they told you that you could. If agents and brokers are not straight up with you they can be held liable. They can not bend the truth or lie to you and they have to be open and honest at all times. If they told you that you could refiance and this information was wrong go see the agent. If you get nowhere go see his Broker (he is the boss). Ask to speak with his broker and tell him or her what happened.
Here are your choices:
Sell the home asap to get out of the mortgage payment.
If you can rent it out for $1500 to cover it, move out and get an apt with lower rent. Make sure homes bills are covered. Depends on area you live and cost of living there. Talk to a Property manager.
Get a second job
Dont file bankkrupcy or miss a payment. It will hurt your credit so bad that it takes years and years to recover.
If you list with ERA, if they dont sell it they buy it (check it out though)
Run add in paper for someone to buy it off you then get an attorney or pay and agent to write up the papers.
Hang on and dont do anything foolish. Make you payments on time. But I think it is best you sell.
2006-11-17 08:50:24 · answer #1 · answered by Nevada Pokerqueen 6 · 1⤊ 0⤋
Generally you cannot refinance a mortgage until after a year, unless you have a considerable amount of equity. $1500 is way too much to pay on a $27000 salary and I can't believe they talked you into carrying such a note. My husband make 50K and our mortgage is $1200 and that's alot for us.
You may consider renting out the house, if you live their alone for a good year or two. Find a roommate. If not put the house up for sell before you face foreclosure. I don't think you can keep going with those payments.
I am a loan officer, so I am just speaking from experience. How much equity do you have in the house? Equity can be your only saving grace at this point. If you have enough, you can refinance in a year.
2006-11-17 08:53:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yikes. Somebody let you get way in over your head in my opinion. They may not be willing to refinance it because you are probably upside down on your loan at this point since real estate prices are falling. There are mortgage specialists who write "B" and "C" paper who may be able to help you. Ask your real estate agent or phone a few brokers.
Next, to help your cash flow, estimate your income tax pretending that you paid almost all of this payment in interest. In other words, for next year, you will be paying about $17,000 in interest. If you haven't adjusted the amount you are having withheld, do so immediately. You should have such high deductions relative to your income that you will pay almost no tax. Keep all records; these situations are zeroed in on by the IRS auditors.
Try sharing the expense by bringing in a roommate to help pay the mortgage. You may have to shoot for a second job as well. Once you have demonstrated for longer than a few months that you can manage this situation, you may be better able to refinance.
Whoever let you do this was not working in your best interest. The average recommendation for a mortgage payment used to be no more than 40% of your income, and you are at 2/3's. If they represented that they could guarantee a refinance, you may have a case against them for fraud and you might want to call your district attorney.
2006-11-17 08:54:11 · answer #3 · answered by kramerdnewf 6 · 0⤊ 0⤋
Have you reviewed your credit history and credit score prior to purchasing your house? If you have bad credit or no credit, the rates lenders will make available to you will be quite higher than the going rate. If you have excellant credit and a high credit score despite your low income, you have a fighting chance of getting a lower rate.
If you do find a lender who is willing to work with you, you would have to extend the life of the loan as long as possible to bring your payments down to something manageable. Don't forget the added cost of home insurance, higher utilitiy bills as compared to an apartment, and property and school taxes.
Housing cost ratio- (total of monthly mortgage payments [including principal & interest], plus 1/12th of the annual real estate taxes, plus 1/12th of the annual homeowner’s premium plus 1/12th of any annual condo association fees divided by the gross [before tax] monthly income). Should not exceed 33% as general rule. If you exceed this in the lender's eye, you aren't going to get a reasonable rate. Sorry I don't know of any mortgage companies to refer you to.
2006-11-17 08:49:52 · answer #4 · answered by personalfinancedaily 3 · 0⤊ 0⤋
The reason why your are a high risk is you make stupid choices. like buying a home with a 1500 mortgage when you make only 2700 per month.
2006-11-17 11:44:03 · answer #5 · answered by Anonymous · 1⤊ 0⤋
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2016-10-15 16:33:36 · answer #6 · answered by mickelson 4 · 0⤊ 0⤋
Around here (Kansas) we have a company called Rural Housing and Development..I don't know if they do other states too or not..Tom.. 316 - 283 - 0370..They do alot of lower income loans with special rates and stuff..
2006-11-17 08:41:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It sounds like you could use some legal/housing advice. Ask around to see if there are any free services in your area. Fanny May might also help.
2006-11-17 08:45:03 · answer #8 · answered by sci55 5 · 0⤊ 0⤋
It depends on how long you have had the home, what is your equity position in the home, and what type of credit you have.
2006-11-17 09:00:08 · answer #9 · answered by Pacific Realty & Funding Network 1 · 0⤊ 0⤋