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Situation: 4.5% Refi Wanted: Excellent Credit & Equity, No Income


Refi-2009
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I need to refinance an existing mortgage for my Mother. Current FICO scores are 735, 753 and 802. Current principle is 225,000, $1400 payment and the value is 750,000+. Current Interest rate is 6.625% and the loan is serviced by Citibank. Self Employed Income is $2,000.

I’m looking to obtain a 4.375% to 4.5% 30 year fixed rate and clearly the income is the problem. I spoke with a mortgage spokesman from Quicken Loans and they said they don’t have the program for this type of situation.

Any Advice?

Thanks

Kevin

As a note, all those engaging in credit repair: You can do it. I took my Mother’s FICO Scores from 570’s to those above in 6 months and never paid a cent, but it was a full time job for that period of time. Study, develop confidence, know your game and send everything certified return receipt requested ($5 per letter)! Don’t ever be late on a payment, but if you are, call the CC company immediately and tell them you did not get your statement (safe play for a removal), you then can file a missing mail with the USPS (With persistence you will win this case everytime). The other thing, catch the collection agency red handed in a legal violation (you need to learn the law and bait them into it) and tell them they owe you X amount of money for that violation. Collection Agencies do not like it when you start demanding money from them, and they usually dump the account and “poof” it’s gone (until some other collection agency gets it). Find the person who has the authority to do what you want, and then be nice. You would be really surprised what someone will do for you if they like you. If you want a debt off your credit report, your first Bureau Dispute is “Not My Account,” if they show it’s your account, the dispute becomes “payment never late,” and them it becomes specific payments not being reported correctly, and then it becomes a battle with the Credit Bureaus if they refuse to reinvestigate (I had both TransUnion and Experian in the Court Room). Generally don’t talk to collections until you start really knowing what you are doing because all they do is document your account. Collection Agents hate it when you tell them you are recording their calls especially if you are demanding an explanation on why they broke credit reporting laws (if you want to sneak record the call you can say "Is this call being recorded"). Sometimes you can yank a collection account by dealing with the original creditor ie: medical bill (ie I was in an accident and bill is not my responsibility or I will pay you only if you recall the account from the collection agency because their representatives broke X law when trying to collect (make it a no no to the original creditor)). Collection Agencies hate it when you stipulate credit removal as a requirement of settlement, but you would always demand that before you ever pay anything and if they won’t, you research the law in your state on conditional endorsements and legally set yourself up to win a lawsuit if they don’t delete it on payment. I sent out so many Intent to Sue Letters: If a collection agent broke a law, I would sent the collection agency a demand for payment in an intent to sue letter! Always pay attention to the Statute of Limitations as that always had a lot to do with how bold I was with Collection Agencies; SOL really is SOL! I had one guy tell me that he does not have to endure this sort of abuse from me on one account that was out of SOL, I had another notation in a collection that is was “Out Lawed.” Know extortion and don't do it (but you can come close)! Credit Scores are an algorithm 3-5 derogs, 6-10, 11 or more (that type of thing), so sometimes it doesn’t seem like much is happening on individual deletes and boom it goes up 75 points. The other thing is you can always open up secured loans (ie 3 $500 secured installment loans), where again it’s an algorithm so 1, 2, 3-5 ….. paid closed accounts etc. Build Credit: Get a screaming deal on a used car, finance it and sell it in 6 months for what you have into it, then get another and another: get 11+ paid closed accounts in a variety of lending categories. Everything of real value I learned was in these discussion boards.

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  • 2 weeks later...

Sadly stated programs are almost non-existant. Can someone be a non-occupying co-borrower with her?

What about a reverse mortgage? They really arent as bad as they are cracked up to be. Just a thought.

Truth is, if there is no income....there is no new mortgage.

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If she is over 62, a reverse mortgage would work great.

As long as she lived in the home, there would be only payments for Taxes & Ins. The loans are figured assuming that the borrower lives to age 100. They still stay in the home as long as they live, and people are living to well over 100 these days.

The loan is currently at 2.15%. That is an adjustable rate. Generally means that the loan is getting larger every year, I would expect that the rate will average 6% over time.

The only time that Reverse Mortgages are a problem, is when the heirs feel that they are getting "cheated" out of their inheritance. It is not the case, because the ownership/title is always the borrower or the estate.

Charles

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