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RMB - LO
7 Posts |
 Posted - 05/14/2008 : 12:46:30 AM
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Hello,
I was told to turn down a refinance inquiry of a first and HELOC because the HELOC was gotten by client approx four months after signing the first mortgage.
I forgot why that was, but trying to figure out. If that's the case, is there a lender that can assist or what can I suggest for the client to do? Even better, what can I suggest to my boss in order to move forward.
Mahalo,
-R-
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liverichly
3658 Posts |
Posted - 05/14/2008 : 01:16:44 AM
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| Was the borrower trying to pay off both the 1st & 2nd with a new mortgage? If so, since the 2nd mortgage is non-purchase money, paying it off with new conforming 1st mortgage would be considered cash out - and that might be why it wasn't possible. If the 2nd mortgage has been around for at least 12 months (and no advances on it in the last 12 months) then FHA can do a rate/term refinance up to ~97% and pay off both the 1st & 2nd mortgage... or if there has been advances taken on the HELOC within the past 12 months, and the borrower has owned the home for at least 12 months, then you could do a cash out refinance up to 95% LTV using the current appraised value on the home. |
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RMB - LO
7 Posts |
Posted - 05/14/2008 : 7:03:31 PM
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Liverichly, thanks for the response....:)
-R- |
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