We have an investment home in 85044 area that is under an interest only loan. We want to refinance but was told since this was an investment home

Asked by Ahwatukee, 85044 Sat Oct 3, 2009

that we are required to put more money down to qualify for the loan. We have excellent credit but do not qualify for the Fannie May modifications nor feel that this would be a good time to sell. Is there anyway to get this home refinanced in this market?

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Greg Knox, , Cedar Knolls, NJ
Sat Oct 3, 2009
BEST ANSWER
Go onto both the Fannie mae and Freddie Mac homepages and follow the steps to see if they own your loan. If they do you should be able to go to 105% of the value, and your original lender should be able to go to 125%. If they do not, you may be stuck.
0 votes
James Wehner, Agent, Scottsdale, AZ
Tue Sep 10, 2013
Talk to your servicer. They will have the best options for you. Inquire about the HARP program.
0 votes
Mike Rankin, , Scottsdale, AZ
Thu Sep 5, 2013
Who do you make your payments too?
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Mike Rankin, , Scottsdale, AZ
Thu Sep 5, 2013
Who do you make your payments too?
0 votes
Nicholas, , San Francisco, CA
Mon Oct 5, 2009
Bill is correct in that a second home will get better terms and will be easier to qualify for. An arbitrary rule of thumb that I have heard some underwriters use for a second home is whether it is more than 50 miles or 1 hour away. Also please note that since you will probably need to turn in your tax returns, and if you claimed rental income on the property in 2008, it will be a bit tougher to convince the underwriter that it is a second home rather than a rental home.
0 votes
, ,
Mon Oct 5, 2009
Investment properties require 25% equity in them. New rules. Sorry. What you may want to do is see how far away this home is from your current home. You may be able to deem it a second home which would be treated like that of a primary residence. Is the home located next to an airport (if you travel a lot), near a mountain, river, lake, another state, city. A lot can qualify it as a second home. you must live in it at least 6 months out of the year (or 2 weeks depending on the lender). Look for a broker that can help you and who can think outside the box.
0 votes
Nicholas, , San Francisco, CA
Sat Oct 3, 2009
how much do you owe on it, and how much is it worth? If you have 20% equity in it, you should be able to refinance it, but 25% equity will give you a better rate. Less than 20% and it isn't owned by freddie mac or fannie mae, and I don't see a way short of paying down the balance...
0 votes
Lucinda Tkach, , Phoenix, AZ
Sat Oct 3, 2009
I have a couple great resources and lenders that can help with refinancing or loan modifications!

Feel free to contact me and I will forward them directly too you!

Lucinda Tkach
Windermere Central
lucindat!@windermere.com
0 votes
Stew Keene, Agent, Scottsdale, AZ
Sat Oct 3, 2009
Tukee,

I have someone that is helping me that might be able to help you.

When the banks don't want to cooperate sometimes you need a different approach.

I am personally using someone I now to help me get their attention but they do that in a different way.

They actually review the loan documents for you and try to determine if there are any disclosure violations that occurred like RESPA and so on when your home was financed.

The Fed's require certain things be disclosed and if the banks make an error that is evidence on the loan docs you may find that they would be forced to modify the loan or forgive the note entirely.

If this is something you might be interested in let me know.

I wrote a Trulia blog explaining a little bit about what they do.

You can read about it here:

http://www.trulia.com/blog/stew_keene/2009/09/investigation_…

Good Luck,

Stew Keene
Home Smart Realty
480-220-7491
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