Is it possible to refinance a mortgage without income verification?

Asked by good4mail, Peoria, AZ Mon Sep 9, 2013

We've been in the house for 12 years with all payments on time. My husband's business had issues with the economy and credit cards were used to sustain it. He can prove the credit card payments are made from the business but on his credit, it looks like our income to debt ratio is very bad.

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Sherri Schwa…, Agent, Phoenix, AZ
Mon Sep 9, 2013
Yes, if you have a Fannie Mae or Freddie Mac loan. It's part of the Federal HARP program. Call your mortgage servicer and ask them. You don't go to an individual loan officer in this case - it only applies to your current lender. The lender will connect you to their own loan officer.
1 vote
Hi Sherri:

There are very few instances where a borrower has to go to their current lender under the HARP program (mostly if have had derogatory credit events such as bankruptcy). In fact, that was one of the basic tenets of HARP--to allow homeowners to go out and get competitive bids, not be tied to their current lender, which could then charge whatever they wanted).

I hope this helps.
Flag Tue Sep 10, 2013
Dave Jackson, Mortgage Broker Or Lender, Phoenix, AZ
Mon Sep 9, 2013
The answer is yes and only with private money. (Expensive and high risk)

Regarding your statement above - the credit report is not always the source to show liabilities. If your business truely pays debt that shows on the credit report and this can be documented for 12 months then these debt payments can be NOT counted towards to debt to income ratio.

Dave Jackson
Loan Officer/Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993
American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
602 631-9788 f
602 524-2401 c
602 912-9438 h
BK # 0910057 NMLS LO ID # 284875
1 vote
good4mail, Home Owner, Peoria, AZ
Mon Sep 9, 2013
I should add that we have a conventional mortgage. Thank you!
1 vote
If it is a HARP loan then while we verify income, most of the time the DTI (Debt to Income) does not matter. You can check to see if your loan is HARP qualified by going to
Flag Mon Sep 9, 2013
James Wehner, Agent, Scottsdale, AZ
Tue Sep 10, 2013
No so much anymore. Years ago you were able to do stated income loans, but that's part of what contributed to the mortgage debacle. Lenders are verifying as much as they possibly can now.

You can check with your servicer and see what they have to offer. Sometimes they can offer more for you then going to another lender.
0 votes
"Sometimes they can offer more for you then going to another lender."

Let's look at how the mortgage lending business works these days. The only "sometime" is if your current lender offers a portfolio product, which means they will keep your loan on their balance sheet vs. selling it on the secondary market. The last I knew about 90% of mortgages are being sold to Fannie, Freddie or FHA, with another 2-3% being jumbo loans. If your lender is selling the new loan to one of those governmental entities, it has to meet the same requirements as if it were a totally new loan, or it won't be eligible for sale and your lender will be forced to keep it on their balance sheet, which they normally do not want to do.

Also, as mentioned earlier, I can't tell you the number of times I have been able to give better terms to my borrowers than they were offered by their current lender, as the current lender feels they have a captive borrower. A good reason to check with a mortgage banker or broker.
Flag Tue Sep 10, 2013
BParker, CPA*, , Scottsdale, AZ
Mon Sep 9, 2013

Conventional loans do require income documentation. As indicated by David, if you are with Fannie Mae or Freddie Mac with your conventional loan, a HARP refinance may be possible if you last refinanced before June 1, 2009. Also, if you can show that the payments have been paid by your husband's business with the most recent 12 months of cancelled checks, that may be one way to overcome the issue.

Give myself, or my associate, Calvin Gale, a call (I am leaving for vacation in a few days) and we will see what we can do for you.

Bill Parker, CPA*

Sr. Loan Officer
NMLS #223607
*Licensed, no longer practicing

15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
Phone: 480-525-8496, EXT 743
Cell: 602-565-3646
Fax: 480-436-5226

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
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