Are there any loan options for someone who has good credit but is upside down on their home about $25k and on an adjustable rate mort?

Asked by Hunter66, Phoenix, AZ Wed Apr 20, 2011

I would like to lock in a fixed rate to avoid a possible increase in my payment over the next couple of years, but would prefer to sell and buy something else.

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4
..., , Lexington, MA
Wed Apr 20, 2011
I agree with Merry - ask your present lender first. They may be able to recast your loan or offer a refinance program that could help you. If you don't want to use your present lender then it depends who owns the loan you have now (FannieMae, FreddieMac, GinneMae, etc.) which programs might be available - in that case any good lender or broker could help.

Tom Stevens, Loan Officer, Flagstar Bank - financing in 50 states
Thomas.Stevens@Flagstar.com
1 vote
Scott Butcher, , Austin, TX
Wed Apr 20, 2011
Hunter66,

Your options as I see them are to go ahead and get an appraisal to see how far you are away from getting either an FHA (up to 97.75% LTV) or Conventional (up to 95% LTV) refinance loan. It sounds like either way you would have to bring some cash to the closing to satisfy you existing mortgage in full. That might or might not be an option for you, but your smart to try and get out from under the ARM your in now. Inflation is definately coming.

One option to think of and I don't know if it would work for your situation would be to look at a FHA 203(k) streamline refinance loan. This type of loan allows for you to borrow funds for improvements to the home. The reason I bring it up is that with an improved home your appraised value (based on a renovated value) might be high to get you out of the hole. You DO have to do the rehab though and hire an FHA approved contractor, you can't pocket the additional rehab dollars.

Just a thought for you to consider.
1 vote
Merry Anne R…, Agent, Lebanon, MO
Wed Apr 20, 2011
My suggestion would be to contact your lender and discuss the concerns you have with them...sadly, you are not the only one in this situation and they are very familiar with what they can and can not offer.
You could also ask another lender or mortgage company - it doesn't cost you anything to ask and will at least reassure you that you've done all that you can.
Good luck!
1 vote
Nelson Jaram…, Mortgage Broker Or Lender, Dunellen, NJ
Wed Apr 20, 2011
DU-Plus you can go up to 125% of the house value.
0 votes
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