Home Ready Refinance Loan

delta97

LoanSafe Member
#1
I wonder if anyone had any experience in obtaining a refinance via HomeReady loan? And especially, if it is doable for those who went through Ch7 six years ago and never reaffirmed the loan. Any guidance will be beneficial. FICO presently is 679.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#2
Hi Delta97,
I'm so sorry for the late reply, I was out of the office yesterday and just returned today. The Fannie Mae HomeReady program follows conventional guidelines for BK which is 4 years post the discharge.

If you would like to go over details I would be happy to do that and discuss goals.
 

delta97

LoanSafe Member
#3
Hi Delta97,
I'm so sorry for the late reply, I was out of the office yesterday and just returned today. The Fannie Mae HomeReady program follows conventional guidelines for BK which is 4 years post the discharge.

If you would like to go over details I would be happy to do that and discuss goals.
Thank you for a reply. I most definitely looking into it. My discharge took over six years ago with no late payments ever since. My LTV is about @ 67%. Income is low to qualify to refinance on my own, but wonder if it is doable via income of my partner through HomeReady program (as long his credit score is not taken into consideration). As well, is it possible to add all refinance charges to a new loan? What rate can I get for 20 year or 15 year loan? Present balance is $232,500. Value is around $363,000. Combined income is $120K. In addition, my loan was not reaffirmed and went through HAMP modification 7 years ago with no principal reduction.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#4
His credit score would unfortunately be taken into consideration, we would use the lower of the two borrowers middle credit score. We can always run a simulator on his credit to determine what may need to be done to improve the score to qualify.

I would need more information to give you an accurate rate quote:
Property Type:
Occupancy Type:
Borrowers middle credit score (I can use 679 if you'd like):

With you receiving a loan mod, that will not impact your eligibility or with the property being included in bankruptcy. The new loan will however not be in bankruptcy protection any longer.

I also cannot provide a rate quote on the forum, please e-mail me at [email protected]
 

delta97

LoanSafe Member
#5
His credit score would unfortunately be taken into consideration, we would use the lower of the two borrowers middle credit score. We can always run a simulator on his credit to determine what may need to be done to improve the score to qualify.

I would need more information to give you an accurate rate quote:
Property Type:
Occupancy Type:
Borrowers middle credit score (I can use 679 if you'd like):

With you receiving a loan mod, that will not impact your eligibility or with the property being included in bankruptcy. The new loan will however not be in bankruptcy protection any longer.

I also cannot provide a rate quote on the forum, please e-mail me at [email protected]

Other banks I spoke with do not use credit score of partner - since his name NEVER be on a loan. That is why HomeReady program there in the first place.! It almost counts as boarder's income. Why would you say that his credit score will be considered? Defeats the purpose.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#6
If you use him as a non-occupant co-borrower than you're correct his score wouldn't be taken into consideration.

Here are the guidelines on that:
Non-borrower household member income allowed as compensating factor supporting high DTI in DU.
Non-occupant co-borrowers are allowed for qualifying purposes. Max 95% LTV.
 

delta97

LoanSafe Member
#7
If you use him as a non-occupant co-borrower than you're correct his score wouldn't be taken into consideration.

Here are the guidelines on that:
Non-borrower household member income allowed as compensating factor supporting high DTI in DU.
Non-occupant co-borrowers are allowed for qualifying purposes. Max 95% LTV.

Actually, he is an occupant and he must sign form that he will be residing in my property for at least 12 month. Thanks for your help anyways. To be brutally honest, I need a rate that is less than 3.5. I
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#8
That would be considered Boarder income, which again the guidelines are below regarding that:


Boarder income is allowed for qualifying purposes.




Without me really knowing the big picture, it's not easy pointing you in a direction or answering your question effectively. 3.5% is a great rate, run with it and hope it all works out the best. If it doesn't feel free to reach out and I'd be happy to go over a quote with you.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#9
I'm assuming you're doing a 15 year fixed as well to get the 3.5%? That's about market rates depending on your scenario.

Be very careful if someone is offering you that rate on a 30 year fixed as it looks like a very large amount of points would be charged. I would hate for you to be in a situation of bait and switch.
 

delta97

LoanSafe Member
#10
I'm assuming you're doing a 15 year fixed as well to get the 3.5%? That's about market rates depending on your scenario.

Be very careful if someone is offering you that rate on a 30 year fixed as it looks like a very large amount of points would be charged. I would hate for you to be in a situation of bait and switch.

Erik, I am interested in 20 year or 15 year fixed only. But looking for 3.0 rate
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#11
What you're being offered at 3.5% is fair and also what I would be able to do. 3% comes with a very large cost (about 2 points) with the criteria of your scenario.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
#14
Honestly you're looking at approximately 4.25% on a 20 year fixed with a 679 FICO. It's almost 4% with a 680 FICO.