Where would you place this loan?

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gtammie555

5 Posts

Posted - 05/13/2008 : 06:00:42 AM

Hey everyone, and advise on this scenario would be helpful and appreciated. I have not been keeping up as I should being that my pipeline has slowed down BIG TIME.... Anyway, I closed this deal in Oct. 07. I went Fannie Mae with him. He had a 517 score, a few collections, but I was able to get him 100%. His MI is out of roof as you may have figured. I took him Countrywide.

He has called me, ready to refi. I pulled the credit..... 614 mid score. His only tradeline is his mortgage. The collections that were recent are all paid. He does have old collections (3 - 4 years ago), but nothing within the past 2 years. He obviously wants a reduced payment. I would love to shoot it FHA, but the seasoning requirements on title and appraisals are what? 12 months right? What are my other options. He does not even come close to having a DTI issue. He makes about $80K a year with about $2000 in debt. With all the changes with MI, can the MI even be written with a score below 620? Please help. Sorry for the long post, but any advise would be appreciated.

1stintegritymort

1289 Posts

Posted - 05/13/2008 : 06:46:01 AM

if you closed him in october at 100%, what makes you think you can close it now if it is going to be over 100%?

Lee3370

93 Posts

Posted - 05/13/2008 : 06:50:23 AM

Where would i go with that loan? Right into the trash pile, 100% 6 months ago = 110% today. 614 = no mi. 6 months = no fha seasoning. But other than that, it seems a really clean deal.

gtammie555

5 Posts

Posted - 05/13/2008 : 06:50:35 AM

I am not trying to refi him at 100%. I never said that. I am trying to get his MI and rate lower. He should be able to refi at 95%. The property has that much equity in it.

brandie

3118 Posts

Posted - 05/13/2008 : 07:02:49 AM

You could do a lender paid MI, but the rate will be little higher and you need a higher score.

jpar994

779 Posts

Posted - 05/13/2008 : 07:56:42 AM

Is the house worth more in a down market?
Or canyou use the appraised value from the purchase to make it work!

EMScommercial

4688 Posts

Posted - 05/13/2008 : 08:31:00 AM

yes, as brandie mentioned.... lender paid mi may be your only way to go....

the_mortgage_guy

802 Posts

Posted - 05/13/2008 : 09:01:57 AM

As long as its rate and term , there is no seasoning requirement and new appraisal can be used. Its only on cash out that most investors seasoning requirements have changed recently , again.

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