Have you tried to refinance under Fannie Mae/Freddie Mac's HARP program and been denied?
Do you owe CLOSE to what the home is worth and NOT want to pay the hefty 1.15% mortgage insurance for an FHA loan?
There might still be options available. Here's some details:
Asset based lending is where Underwriting is done MANUALLY and if the underwriter likes your scenario - you get a loan! This type of financing is mostly used for JUMBO loans and is a great tool for you Stock Brokers (because I'm sure you'd rather have your clients keep their money in the investment than cash out to buy a home or refinance). 5yr, 7yr and 10yr ARMS is the main type of financing including 30yr/F (but rarely). Rates are around 5% but NO mortgage insurance!
Do you have a nice Money Market account, IRA, Stocks, Bonds that are making money for you? You don't want to pull that money out because it's gaining interest.....right? Are you stuck in a bind where you owe more than the home is worth or close to what it's worth and can't refinance because of the loan to value requirements set by Fannie/Freddie for conforming or high balance loans? Do you have a short sale, settlement or modification on your credit preventing you from getting a loan? Or maybe you're trying to purchase another property?
Here's an example of how this works:
Joe Smith has a blemish on his credit that prevents him from refinancing and he owe's 100% of what his home is worth. Most jumbo lenders will only finance up to 70% - here's the kicker. Joe smith will have to put down 10% but he can pledge the other 20% in assets (contract will be held against the asset to protect the lender against future default.) So NOW Joe has a loan at 90% LTV at around 5% interest with no mortgage insurance!
1. 300K + loan amounts and higher
2. MUST HAVE A LARGE AMOUNT OF LIQUID ASSETS
THIS IS NOT ASSET DEPLETION (which is another route I can always explain to everyone.)
Anyways this is just me ranting about a new product I have available that I think can help many of those people stuck in a bind. That's what loansafe is for right? Educating homeowners with the options they have available. Well here's another one!