How can I refinance this investment property.
I purchased a Condo in 2004 that was my primary residence with 20% down, 165k purchase price, 5.875% 5yr ARM. It was refinanced 1.5 years later into a 5.875% 30yr fixed. I stayed in it for 3.5 more years but had to move to another state when the economy soured. The Condo became a rental. Now I am trying to get it refinanced through HARP but everyone I contact says it isn't possible. HARP pages show 125% LTV max for investment properties and show no problems if occupancy status changed but nobody will touch it. Actual market value of the property is hard to tell but I estimate it is 110k and the loan on it is 120k. Is this eligible for HARP? by dblava_840_294 from Trenton, Michigan. Oct 13th 2011
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
What you are probably experiencing is what we call "Lender Overlays" these are additional terms or conditions that are more restrictive than those of FNMA, FHMC or FHA. First verify that your property is eligible. In addition to the loan being owned by FNMA (http://loanlookup.fanniemae.com/loanlookup) or FHMC (https://ww3.freddiemac.com/corporate/) you will also need to verify that your condo project is still eligible. Many Condo projects have evolved to where there are too many rentals or vacant units to qualify for FNMA/FHMC/FHA financing and this could also impede your ability to have a lender refi for you. In addition to your current loan servicer, you will also want to try several local Mortgage Brokers or Mortgage Bankers who should be able to confirm eligibility for you.
I can only seem to add as an answer! Thanks Bert... I apologize I should have added more. It is owned by Fannie and the current loan servicer does not do any refinancing what so ever (sold from one company to another 3 times)... The local companies I have contacted give me the LTV needs to be 80% ratio. Nobody has said it does not qualify for HARP, just that it needs to be 80%.
Jeff Cost (midwestlender)
#39 ranked lender in Ohio - 164 contributions
Hello Trenton, MII agree with my colleague on this scenario. Considering your situation and the loan to value your current rate is not that bad. If you have other assets or stock accounts there are some great asset based loans with great interest rates. If that is an option for you contact me and I will go over all the details.ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710#!/pages/ENG-Lending-Cincinnati/171183536269710?sk=wallOr Call Anytime 513-403-6260
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