Financing in 97223>Question Details

Saphiregirl, Home Owner in 97223

Can I refinance my home while I am on unemployment?

Asked by Saphiregirl, 97223 Mon Aug 15, 2011

Can I refinance my home if I am on unemployment and disability income? I am not working at this time.

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I highly suggest you look into the many types of modifications available through your current lender (you can call it a refinance of sorts). There are too many questions to ask you, to fully understand your situation and provide you the best resources. DO YOUR RESEARCH. You might have heard that over 50% of the original modifications were denied and/or unsuccessful. In light of the news there have been some changes and added support both federally and here locally. There are programs for people just like you, unemployed and/or disabled. http://www.makinghomeaffordable.gov/programs/unemployed-help…
I hope that helps!!
0 votes Thank Flag Link Wed Nov 2, 2011
Ok - I want to help you understand a couple things.

The lender looks at a couple things.

1. How long you have had the unemployment and disability income
2. Is it likely to continue for at least three years into the future - this is usually why unemployment, unless normal and customary for your line of work and happens every year, will not be able to be used

Lending looks at the past, present and future of a borrower

Capacity
Credit
Collateral

If you have any other questions - I would be happy to help

Rich
0 votes Thank Flag Link Tue Nov 1, 2011
Depends upon a number of things. What kind of loan do you have now? FHA and VA have fairly liberal streamline guidelines; whereas, conforming loans are much more restrictive. With a conforming loan you essentially have to re-qualify to "buy" your home. What is the reason for the unemployment? Some people have seasonal unemployment that is reflected every year on their tax returns. If that is the case, the lender may use it for refinancing. Disability income must evidence continuance of three years for it to be considered as viable income.
0 votes Thank Flag Link Tue Aug 16, 2011
as said here, you'll need to talk with a lender. But i can tell you pretty positively that since unemployment income is not permanent, they can't count that. Disability income can be counted but it depends on the details. I've had several clients where one of the parties was on disability and that could count as income, but you would likely have to qualify for the payments using only that (and not the unemployment). I would definitely talk with a lender, or if you're more comfortable reaching out online, many lenders have online applications to get you started. One of my favorite lenders because of his experience and genuine concern for buyers, is Larry Urbanski at Eagle Home Mortgage. He happens to be in Tigard, too. His website is below, and either call or apply online and you can find out more.
Best to you
Marge
0 votes Thank Flag Link Mon Aug 15, 2011
That is a great question for lenders since they will know what to look for in your income to debt ratio. There is the possibility as long as you have a stable income - no matter where it comes from. They will also need to see you have good credit scores.
0 votes Thank Flag Link Mon Aug 15, 2011
Depends, are the disability payments permanent? Debt ratios, factoring in the disability income and appraised value of the property will determine, along with your credit score, if and how much a lender will refinance.

Unemployment is not considered gainful employment and the payment benefits are short term at that.

Best wishes!
0 votes Thank Flag Link Mon Aug 15, 2011
Lenders will want to see and verify that you a job on a permanent basis before they approve your loan..
0 votes Thank Flag Link Mon Aug 15, 2011
At Arbor Custom Homes we use Adam Ansteth with Wells Fargo for our perferred lender. You may want to reach out to him and ask directly. Hope you the best. Contact: Adam Ansteth 503-720-4000 or adam.m.ansteth@wellsfargo.com
Web Reference: http://www.adam-ansteth.com
0 votes Thank Flag Link Mon Aug 15, 2011
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