125% ltv refinance WITHOUT freddie/fannie + other options? (PMI, loan, interest rate)

[manman1]

I am at roughly 125% ltv (a little lower) and wondering, is there ANYTHING that can be done for those of us who’s loans are not owned by freddie or fannie? I am pulling my hair out about what to do with this 1 bedroom condo i bought at the worst possible time… I was single back then so this was enough, but now I have a baby, wife, and dog, and it is just WAY too small… I would love to be able to sell it, but being upsidedown by so much, it seems that’s just not possible.


At the time I bought, I also did not have great credit, so my rate is 7.625, so I feel like I'm paying way more a month (30 yr fixed, 1800 a month for a 234k home, no PMI) than I could be with my current credit situation.

My current income is about double what it was when I bought the home, and my credit is far better (low 700's). I have no trouble affording the current mortage, so I don't qualify for any loan modification programs or anything like that. My main goal here is just to find a way to make the monthly payment more affordable so I can free up some cash to either rent a larger place for my family, or (if possible?) sell at a loss and take a loan to cover the difference myself- and then buy/rent a larger place. With what I currently pay per month, even for what I could get if I rented the place out, I'd still be paying enough per month that it really limits our options on what we can afford in a new apartment or home...

ultimately getting out from under this condo would be my favorite option if it was possible, but if not I'm just looking for SOME way to cut this monthly payment down... becu was willing to offer me a refi, but with PMI it would have cost me about $7k to save about $100 a month..no thanks

any help would be appreciated!

[treasr]

Having a Freddie Mac 125% refinance loan you can not have PMI. So wanting a 125% loan is out no matter what.

You could be dishonest and quit paying your mortgage for about 3 months, that is what my neighbor did that is a Physician's Assistant!! He was trying to convince me to do that. I am don't believe in being dishonest.

I just want to know why a person with a high credit rating (mine is 776) and pays taxes, works and is honest is penalized by gov't programs??

One place you can try is Quicken Loans, they can give you an answer in about an hour. [url]https://www.quickenloans.com[/url]

[treasr]

Another option is to sell your house, take a loss on it and then buy a cheap foreclosure (which you can add on what you lost on the original house to the new house's mortgage). You will then break even.

[sigep739]

125 ltv loan is nearly impossible to do in any circumstance. I know that our awesome federal government came to the rescue to say that they'd offer these... but they simply aren't enough lenders out there willing to do them.

There is something called "hard money." But you wont get a better rate than what you are getting now.

If you can afford your payments, you should just keep paying. You said you didnt have PMI, right? Sounds like a great loan to me. Sure - your interest rate sucks.. but lets say you had a SWEET appraisal and got it to 105%, they're going to make you pay PMI.. so that is going to add $200 a month to your refinanced loan if you were able to get it.. so it may not be the best deal anyone (when you consider you'd be paying about $4-6k in fees).

[dad2jules]

Originally Posted by treasr

Another option is to sell your house, take a loss on it and then buy a cheap foreclosure (which you can add on what you lost on the original house to the new house's mortgage). You will then break even.

Selling a home and buying a home are 2 seperate stand alone transactions even if they take place back to back at the same table. You can't roll the loss of 1 into the other- there is no lender that would approve this.