I'm I doing somthing wrong?

[andethman]

Hi,

First time I have posted. Need some advice, I have a 2 unit property (duplex) in MN. bought it in 2004 for 265K, as my first home. My wife and I lived in one unit for 4 years and we now rent out both units. I have a first with B of A and a second with Wells fargo. B of A was a 30 year fixed at 5.5% originally $212,000. now 178K. 2nd with wells was 39K at 7.25 30 year fixed loan. now 36k. The house is worth 145K now, I rent it out and make $1,800.00 per month. Loan payments are $1,850.00 PITI per month and with operating expences I am losing around $300.00 per month. I make around 100K a year, I was hoping for a refi on the first and I would just have to pay off the 2nd over time. My FICO is 820

Issue is B of A will not let me use the Harp 2 they say the have a hold on all 2nd home and investment properties refi's and they said that even if they would do a refi the best rate they could offer is 4.5%. Wells said they can do nothing.

Should I be trying a diffrent route? Am I dumb to try to hold on the the house. I don't want to give it back as I took the loan out so I feel I need to pay it back. But no help?

What would you do it you were me?

Thanks
Dan

[Erik Sandstrom]

Hi Dan,
Welcome to the forum! I just recently heard this news as well from one of my clients.

The reason Bank of America has put a halt to investment properties and 2nd homes is because they are very difficult to get through automated underwriting. The approval rate on those types of properties is much less than owner occupied homes. It sounds like they are focusing on the loans they have better chances of obtaining an approval.

I'm more than happy to work with people for investment properties and 2nd homes, I'm not picky and like to help everyone I can. Also, 4.5% does sound a bit high but could be close because the property is investment. I would be more than happy to go over a rate quote with you and see what we can do to proceed with the HARP refinance if you qualify.