Hi, my parents are looking into refinancing a rental property in the 95120 area. The LTV is about 12%.

Asked by Steve, 94539 Tue Mar 5, 2013

The problem is both of them are retired with no fixed income. Is there any lender can work with that?

Help the community by answering this question:

+ web reference
Web reference:

Answers

12
Mitchell Pea…, Agent, San Jose, CA
Thu Mar 7, 2013
Steve:

Final comment on your loan to value: A loan to value of 12% means the loan is only worth 12% of the total value of the property. I would be very surprised if a loan cannot be had for a reasonable interest rate based just on the rental income from the property. I would think, at such a low loan to value, the rental income will show a positive cash flow for the property, probably enough for that alone to qualify for the re-finance. As before, I am standing by to assist your parents.

Mitchell Pearce
408-639-0211
mitchell@handsonrealtor.com
1 vote
Mitchell Pea…, Agent, San Jose, CA
Wed Mar 6, 2013
Steve:

To clear up confusion on the reverse mortgage option:

Reverse mortgages are only available for homes in which the owner, over age 65 lives. So the assumption is that they would get a reverse mortgage on the home in which they live, not on the rental. That money could be used to improve the loan to value ratio on the rental, making re-financing easier. Or they could move back into the rental and get a reverse mortgage on the property.

Once a reverse mortgage is on the property, it does not have to be paid back till the owner dies or moves out of the property.

As I mentioned in my previous answer, they are probably eligible for a HARP2 re-finance. If not, then we need to look at alternatives. You or they can give me a call at 408-639-0211.

Mitchell Pearce
mitchell@handsonrealtor.com
408-639-0211
1 vote
Gregorio Den…, , San Diego, CA
Tue Mar 5, 2013
Are you saying 12% Loan to value or they have 12% equity? If 12% loan to value as you stated, they could possible do a conventional refinance if they have retirement, social security or even income from their rentals. This would be fairly easy to accomplish.

If it's 12% equity then they cannot refinance the rental unless it qualifies for HARP. I would be happy to assist in determining if they qualify.

Lastly, contrary to previous comments, they cannot get a reverse mortgage on a rental property so that is not an option. Please make sure you and they are speaking with a licensed California loan originator to have the most accurate and up to date information available.
Web Reference:  http://WeFixRates.Com
1 vote
Terri Vellios, Agent, Campbell, CA
Tue Mar 5, 2013
408-605-1848 Dave Setti at Turnkey Mortgage

dave@turnkeyms.com

Contact Dave at the above. They not only are a direct lender but can shop for your parents as well.
Web Reference:  http://www.terrivellios.com
1 vote
Jinaye Conley, , Saratoga, CA
Tue Mar 5, 2013
I would like to introduce you to a strong lender who can not only accomplish the loan but also complete the task seamlessly. His cmpany closed a transaction last week for my clients and I was very pleased.

Rates are extremely attractive and some programs may offer rebates for your parents.

Please call my office at 408-497-6528 for the referral or dimply forward the contact information and I will handle the introduction in a professional and caring manner.

Email me at inresidential@yahoo.com
1 vote
Dwayne Allen, Agent, San Jose, CA
Tue Mar 5, 2013
I would recommend a Mortgage Broker. I use Paula Reinhold at Stearns Lending 707-490-7322 because she makes loans go through that I thought would never happen.

Dwayne
DRE 01926007
1 vote
Tom Tran, Agent, Campbell, CA
Tue Mar 5, 2013
If they are retired and have social security then that social security income can be counted. The rental income may also be enough to offset the loan on the property in order to qualify.

Tom N. Tran
Realtor/ Loan Officer
The Property Network
408-205-5285
866-903-7682 fax
DRE# 01373920
NMLS# 346684
tomloans@gmail.com
1 vote
Mitchell Pea…, Agent, San Jose, CA
Tue Mar 5, 2013
Steve:

Along with the reverse mortgage option, your parents may be able to use the HARP2 program, which is designed specifically to re-finance homes with high loan to value, even negative loan to value. It is a government program. I can explain whether your parents would qualify. Please give me a call at 408-639-0211. I am a loan officer at High Tech Lending as well as a realtor.

Mitchell Pearce
408-639-0211
mitchell@handsonrealtor.com
1 vote
Bill Mccord, Agent, San Jose, CA
Tue Mar 5, 2013
Steve,
Depending on their age a reverse mortgage might be a much better option. They could possible end up with a large lump sum to support their retirement and no more mortgage payments.
The modern reverse mortgages were partly designed and are recomended by the AARP. They are not scams.
Good luck
Bill
1 vote
Thanks for your reply. Since it's a rental property, this doesn't qualified for reverse mortgage.
Flag Tue Mar 5, 2013
Charles Lee, , 90069
Tue Mar 5, 2013
We may be able to help - Understand we a private funds so more expensive than traditional lender.
http://www.theboydcapitalgroups.info/
1 vote
Thanks for your reply. Assuming the loan value is $100k with 15 year term, what kind of rate can you guys do?
Flag Tue Mar 5, 2013
Rebeccatrulia, Renter, United Amigos, Mesa, AZ
Fri Sep 27, 2013
Hi Steve

A reverse mortgage is a special type of loan available only to older homeowners with full or nearly full equity in their homes. Such owners can borrow against the equity they have built up over the years, but no repayment is necessary until the borrower sells the property or moves elsewhere. If the borrower dies before the property is sold, the estate repays the loan (plus any interest that has accrued.

http://www.reversemortgagelendersdirect.com/reverse-mortgage…
http://www.reversemortgagelendersdirect.com/reverse-mortgage…
http://www.reversemortgagelendersdirect.com/how-does-a-rever…
http://www.reversemortgagelendersdirect.com/reverse-mortgage…
0 votes
charles butt…, Agent, san jose, CA
Tue Mar 5, 2013
Thank you for your question, Steve:

The best person to talk to is Doug Jones, the owner of Mortgage Magic in San Jose.

Mr. Jones has been a lender for over 40 years and has a great deal of experience with this issue.

You can reach Mr. Jones at: (408)209-6773

You can also go to the website for Mr. Jones at: http://www.mortgagemagic.com

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more