Help re new FHA loans for those homes that have lost value (loan officer, credit report)

[momto3ct]

My relative wanted to refinance her home with the new FHA loans for those whose home has lost value. She is current with her bills and has "okay" credit. When Quicken looked to help her refinance, he said her Parent Plus loans prohibit their ability to refinace. Here they are making all their payments now but cannot qualify to pay less because they helped their kids go to college! Can anyone suggest a next step??

[Debsi]

Originally Posted by momto3ct

My relative wanted to refinance her home with the new FHA loans for those whose home has lost value. She is current with her bills and has "okay" credit. When Quicken looked to help her refinance, he said her Parent Plus loans prohibit their ability to refinace. Here they are making all their payments now but cannot qualify to pay less because they helped their kids go to college! Can anyone suggest a next step??

Not sure I understand you... the loans stop them from getting a refinance because the payments make their debt to income ratios too high?

[momto3ct]

Yes, the loan officer stated if they were able to have their children...3 parent plus loans....take over the loans, then they could refinance. She doesn't believe that can be done. 3 Parent Plus loans come to almost 40,000.

[debbieschwab]

I am the seller and was supposed to close today. An issue arose about public utility easement issue that I was not aware of until last week. My realtor had not asked for a plot plan until very late in the game. No the buyers want me to pay $1159 for a rate lock extension is this normal and do I have to pay this ?

[Pfhtex]

Originally Posted by momto3ct

Yes, the loan officer stated if they were able to have their children...3 parent plus loans....take over the loans, then they could refinance. She doesn't believe that can be done. 3 Parent Plus loans come to almost 40,000.

Quicken sucks, especially at FHA. You are looking for a Streamline refi that uses a Mortgage-Only credit report, which would sidestep this issue. We'd likely want to look at the score and massage it upward, if it is not sufficient for this type of Streamline. It's possible, but not with the cube-dwelling dimwits at Quicken because all they know about the business is glowing on a script on their computer screen.