If the ex was removed off title, you can remove that person off the new du refi plus loan. Unless they changed DU on me AGAIN (I know the newest recent revision rules), it's completely doable.
95 LTV is possible folks...Fannie/Freddie's jsut gotta own your loan.
If you currently have only 5% equity in the home, then you don't have enough to do a 95 LTV loan. For most refis, your closing cost (depending on taxes and amount required to be escrow---for May it will be about 7 months) typically run between 3-5%. That said, if you truly want this home and wish to keep your monthly payment as low as possible, you'll need to put 20% down. This will insure you the best/lowest interest rate, eliminate the need for costly PMI or a LPI loan, and give you the best/lowest monthly payment.
If you plan on being in this home for more than five years and its in one of those desirable location that will see a significant (30-50%) return in market value once home prices start to recover (which some say can take up to another 3-5 years) putting 20% now may prove to be a wise and lucrative investment. But I don't have a crystal ball and know one can predict what the market will and won't due tomorrow let alone 3-5 years from. But if you truly love this home and its location and plan on staying regardless, then 20% is definitely the way to go.
Heidi, who is your loan with now? Wells does have a program that can allow you higher LTV, where you don't have to document income, if the loan is Freddie owned, but I don't know enough about the program to tell you whether you can remove your ex's name.
The only way to do this is IF the property MORTGAGE is currently owned by fannie mae. If it is and you purchased the property without MI, then it's completely possible to get a 50% DTI with no PMI and no impounds.
Give me a call at 949-870-2882 and I can help you out.
Chinatrust Bank USA
First, Fannie Mae caps out the back end debt-to-income (DTI) ratio at 45% of your gross monthly income. Virtually no lender will approve it at 50%.
Second, the only way to accomplish that what you want to do is to pay down the mortgage. What you can do is be willing to pay off some of the current balance, refinance your current mortgage, and do a mortgage where the total monthly mortgage payment plus the monthly payments of your other debt obligations does not exceed 45% DTI ratio. The new mortgage balance must also be at or less than 80% loan-to-value (LTV) (must have at least 20% equity) to avoid PMI and avoid an impound account.
Alternatively, if able, you can do a DU Refi Plus program if you have a Fannie Mae or Freddie Mac loan. If you currently are not paying PMI, then you will not have PMI on the new loan. However, you're still faced with the DTI ratio issue and may still have to pay down the mortgage.
If you find that you will have to pay down the mortgage to a point where you will equity of 20% or more after you refinance, you're better off doing a conventional refinance as oppose to doing a DU Refi Plus as rates for DU Refi Plus loans are higher than for conventional loans.
Even with my recent client who had 825 Fico and $700k in liquid assets, the best any bank could do right now in this lending environment was 45% debt-to-income. I hope this helps you.