how to refinance when you are told the property does not meet certain guidelines
I currently own a condo in an eight unit building Hoboken, NJ. I have a fixed 30 yr @ 6.25%. Excellent credit (800 FICO) and have owned the condo for about 6 years. For the past 2 years I have rented the apt (rent covers mortgage/maint/taxes). When I tried to refinance 6 months ago, I was told that because 6 of the 8 units in the building are rented I cannot refinace. Since greater than 50% of the building is rented this did not meet guidelines by Fannie/Freddie.What is an alternative course of action I can take in order to reduce my mortgage payment. Any suggestions are appreciated... by bjv2079 from Hoboken, New Jersey. Jun 15th 2010
Nic Netherton (ColoradoLender)
#15 ranked lender in Colorado - 57 contributions
You will probably need to look into some local credit unions or your current bank for options as that amount of rented units is going to be a problem with most conforming programs.
Eddie Stephen (EdtheLoanGuy)
#12 ranked lender in Colorado - 24 contributions
You may also have other options depending on what type of mortgage you currently have on the Condo.If you contact me I can help discuss what is availableEddie Stephen866-218-9696eddie@edtheloanguy.com
Chris Corica (chris@myqcfunding.com)
#22 ranked lender in New York - 59 contributions
I agree with ColoradoLender. As far as Rwoodwards answer, it would be tough to know what kind of savings would be available or if it makes sense to refinance without knowing all the details. Along with the credit union and current bank, try a local bank who has portfolio products available. They may have more flexibility with their underwriting guidelines.
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
Call US Bank. They are one of the national lenders that do not require a Condo Cert. That's how your lender found out. .... Happy funding, Rudi
Richard Woodward (RichardWoodward)
#37 ranked lender in Texas - 106 contributions
Since your property is a condo and a rental property at that, the rate available for such a transaction would not be significantly lower than what you currently have. When you factor in the cost of refinancing, your savings would not be that much - even if you could refinance. So really, you are not missing out on huge savings. One other thought, you might consider a self-directed IRA. Use your IRA to pay off the current loan, then repay it to yourself (IRA) with tax free interest.
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