I just purchase my home in July, 07. I did 100% finance and also did stated income. My credit is okay, it is 683. My current interest rate is 10.175. I just want to refinance for a lower interest rate. I have an interview with a FHA loan counsler, I just wanted to know will they be able to help without having me put out any money.
2007-11-15 07:15:07 · 6 answers · asked by karen a 2 in Business & Finance ➔ Renting & Real Estate
http://www.fhatoday.com/fha.htm
2007-11-15 07:20:36 · answer #1 · answered by MARY N 4 · 0⤊ 1⤋
There are two problems here:
1. FHA does not allow stated income, so you would have to be able to qualify based on documenting your income.
2. If you bought a few months ago with 100% financing, your property has more likely than not, decreased in value.
And shame on who ever put you in a mortgage at over 10%. They should have advised you that it just wasn't the time to buy. And shame on the bank for even allowing it. It's because of banks like that, they we now have the delinquencies and foreclosures (and bad reputation) that we have.
I wish you the best in getting this resolved. Perhaps another sub-prime loan will be able to help a little, but if there is no equity, you would have to come up with closing costs out of pocket, and that would negate reducing the rate. Also, your credit would have had to improve.
2007-11-16 01:05:24 · answer #2 · answered by Anthony 3 · 0⤊ 0⤋
Probably not with the FHA secure program, that is for people who are defaulting on payments as a result of adjusting interest rates not people who just bought a house 4 months ago and now can't afford it. Your payments have not changed from when you signed and your rate did not go up. Why on earth would you sign a note with a 10.175 interest rate when you qualify for A paper rates? But I digress ...
If the value of your home has not changed you may be able to refi to a My Community or Flex loan but probably not FHA since they don't do 100% financing. If the FHA route does not prove fruitfull, you should see a licensed and experienced broker about refinancing; the rate change would save you a fortune from 10+% to something sane.
2007-11-15 08:06:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can absolutily get a better rate as long as your credit has not gotten any worse since you purchased the home. The interest rates have come down and any Lender should give you an evaluation and a good faith estimate and provide you with a Truth and Lending statment. All Mortgage brokers are required to provide borrowers with a truth and lending statement, showing you what the true cost of the loan will be, hope this helps
2007-11-15 23:11:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Highly doubtful, for one you will have to prove your income, for two 100% unlikely possible with 3% down, and lastly your home is most likely not worth what you owe on it as housing has been depreciating, the amount of which depends on where you live. Worst states, CA, FL, NV, OH, MI down approximately 8-10% and expected to drop over 20% more.
2007-11-15 09:24:30 · answer #5 · answered by Pengy 7 · 0⤊ 1⤋
you need to go full doc with FHA .
fha doesnt have a score requirement so you can have a 400.
rates for a 30yr fixed are 7.25% and lower.
you need to have at least 2.25% in equity OR you will need to bring 2.25% to closing plus additional closing costs
2007-11-15 09:44:15 · answer #6 · answered by Anonymous · 0⤊ 1⤋