Your Questions About Mortgage Refinancing Programs

Jenny asks…

What is the difference between the FHA Streamline Mortgage and?

the Home Affordable Refinance? I’ve called my mortgage company (First Horizon) and no one that I speak to there can give me any information on the Home Affordable Refinance! They don’t even know what the guidelines are! Can anyone help me out here? I purchased my home in June 2008 and all of my payments have been made on time. I’m just wondering if an appraisal is needed, employment verification, certain credit score….

John answers:

Hi There!

Hopefully this will help shed some light on the FHA Streamline.

The FHA Streamline is a refinance program from the Federal Housing Administration which could get you a lower rate on your FHA mortgage without an extensive qualification process. Simply put, the typical refinance process is streamlined! FHA Streamline is also known as FHA IRRRL (Interest Rate Reduction Refinance Loan).
In order to qualify, you must currently be in an FHA loan.

The other benefits of the FHA Streamline include…

-A lower fixed rate and payment on your FHA loan; even if you owe more than your home is worth.
-A no appraisal option.
-Minimal credit requirements.
-And limited documentation for qualification ease.

The Making Home Affordable Plan has a bit more to it. Here’s how to determine which program is right for you:

1) If you owe less on your mortgage than your home is worth…
This means that you can qualify for today’s already low mortgage rates.

The message of the plan is clear – the government wants American homeowners who currently qualify for a refinance to take advantage of historically-low low mortgage rates.

2) If you owe more on your mortgage than your home is worth…
If you owe more than your home is worth and previously couldn’t qualify for a refinance, you may qualify for the government’s new Making Home Affordable plan.

With a new, streamlined refinance program from Fannie Mae a reliable lender could refinance your mortgage to a low, fixed rate. This is really good news for nearly 5 million people who couldn’t previously refinance under traditional guidelines.

If you’re on time with your mortgage payments, but couldn’t refinance due to lack of equity, the streamlined refinance program is for you.

3) If you are struggling to make your mortgage payments and face imminent foreclosure on your home…
Under the new plan, the government is working to provide loan modifications to people who can prove and document financial hardship through job loss, change in income, significant debt or an adjusting interest rate.

This is an option for which only a small percentage of homeowners will qualify. If you believe you qualify for a loan modification under the government’s new plan, call your loan servicer (the company you make your payments to).

Otherwise, choose a knowledgeable lender who you can trust to find out if you qualify for the other programs!

Hope this helps!! And good luck!

Daniel asks…

How does a chapter 13 buyout mortgage work?

We are in Chapter 13 bankruptcy, but have paid it down to less than $10,000. We can have a lower mortgage payment if we refinance and pay off the Ch. 13. Is this a good thing to do?

John answers:

I Disagree with the last answer…The loanger you take to get out of bankruptcy, the worse it is for your credit..

I would suggest doing the buyout, and set up on a 2/28 mortgage. It is a 2 year ARM program, with no prepayment penalty..

You may have ahigh rate for the first two years, but at the end of the 2 years, once your cresit score has improved, you refinance again into a lower rate..

You need to make sure that in the 2 years, you dont pull your credit, apply for any loans or credit cards, MISS ANY PAYMENTS, or anything else that will hurt your credit…

I dont know if you have found a lender specializing in bankruptcy buyout, but i work with multiple investors that focus strictly on bankruptcy buyouts..

My name is Jason Fry, i work for Providential Bancorp, and am licensed in almost all states..
I work with a portfolio of over 60 investors, and guarantee one of our subprime lenders can qualify you…

Feel free to give me a call at 312-264-6448, or email me at jasonf@providential.com…

Thanks, and good luck to you!

Jason Fry

William asks…

How to refinance when payments are too high?

My mother lives in PA, and her mortgage payments are so high, she lives paycheck to paycheck, barely making it. She tried to refinance, but because she has been late on a few payments because they’re so high, they wouldn’t let her. Are there any credible companies/programs that actually WORK WITH PEOPLE to help them lower their payments in PA?

John answers:

She refinances with another loan. However, if she has proven not to be reliable there is no way in hell another bank is going to get involved.

She should sell and get something cheaper.

Ruth asks…

how do i obtain a mortgage on a house that was inherited?

currently living with father in law when he passes house is in the will that i will inherit,house has been paid off since 1982.house needs many upgrades,from roof to foundation,how would i get a mortgage ?

John answers:

Once you inherit the house and have the executor of estate papers you’ll be closed in about 2 weeks on a mortgage if you want it for home improvement or whatever. I hope this helps Contact me if you have any other questions

HOMEOWNERS seeking a mortgage refinance and new home buyers are often told why they do not qualify for certain loan programs from their mortgage company. Top Flite Financial, Inc. Prides itself on being able to place almost any home loan, even if you have less than perfect credit. Dealing with the greatest range of mortgage lenders allows us the most flexibility when working with our clients on refinancing mortgages AND home purchase loans.
Let our experience save you time and money!

(989) 723-5400 Office
(989) 277-7610 Cell Phone
989 723-5410 Fax
Wes_TopFliteFinancial@hotmail.com

Donald asks…

Mortgage company to refinance in a building that is12% owned by one owner?

We would like to refinance our condo, however, 12% is owned by one owner. The last people we contacted said they wouldn’t finance in a building where more than 10% is owned by one owner.

John answers:

You may not be able to refinance because you were applying under a strict HUD backed program such as FHA. The rules on this are constantly changing but you should try a conventional loan which may not have the same requirements.

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