No Equity Mortgage Refinancing Solutions
ByUnfortunately, many homeowners have no home equity and have been unable to qualify for a mortgage refinance loans that would save them thousands of dollars a year in interest. The reality is that not all borrowers are able to meet the 2011 refinance guidelines with FHA and conventional lenders. With refinance rates falling to 50-year lows a few months ago, many homeowners are kicking themselves for not seizing the opportunity that refinancing presents with lower monthly payments.
The most common factors that contribute to borrower’s inability to qualify for home refinancing in 2011 is bad credit scores, lack of equity and insufficient income.
Most homeowners have gone the traditional route only to be turned down for a logical refinance loan that would lower the borrower’s loan payment and increase the likelihood that they won’t default on the mortgage. There are several mortgage relief programs that have helped distressed homeowners successfully reduce their mortgage payment. The Home Affordable Refinance Program is a unique loan solution that enables homeowners to qualify for a 125% mortgage refinance. This is a rate and term program that allows refinancing with no cash out or debt consolidation options, but certain restriction apply. The HARP program enables qualified borrowers to get approved for fixed rate mortgage refinancing. If you have a second mortgage, the 2nd lender must agree to subordinate the lien.
Borrowers Must Meet the Following Home Affordable Refinance Program Qualifications:
- The owner of a 1-4-unit home with a mortgage owned or by Freddie Mac or Fannie Mae.
- Borrowers cannot be currently delinquent on their mortgage
- Borrowers cannot have been more than 30 days late on a mortgage payment in the last year
- Borrower must be able to document the ability to afford the proposed refinanced payment
- The refinance loan cannot exceed 125% of the value of your property.
- Borrowers must have at least a 620 FICO score
Don’t wait any longer because the Home Affordable Refinance Program expires at the end of June 2011. Talk to a loan officer today and reap the benefits of a no equity mortgage refinance.
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