U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-14-2010, 03:48 AM
 
Location: SF Bay Area
11 posts, read 30,828 times
Reputation: 13

Advertisements

It's been a while since I last read about any new government refi assistance programs for those who are living in homes that are 'underwater' or no equity.

Will any lender refinance without an appraisal?

I have been looking for ways to refi into a lower interest rate but my home value is at break-even with the current loan balance.

Any options out there today??

Thanks in advance...
Rate this post positively Reply With Quote Quick reply to this message

 
Old 10-14-2010, 07:02 AM
 
Location: Plano, Texas
1,675 posts, read 6,652,507 times
Reputation: 694
There is a possibilty of being able to refinance without an appraisal. When a loan is ran through automated underwriting it basically determines what type of appraisal is required. There are 3 possibilities. 1. full blown appraisal with value 2. drive by without value which means the appraiser drives by your home takes a picture to make sure the house isnt in disarray 3. property inspection waiver without value. The last 2 uses the value that was submitted when the loan was ran as the fair market value. If you home is worth around $200k, but you run it saying it is worth $250k, it will require a full blown appraisal as the underwriting engine does a market anaylsis.

If you are potentially underwater, you will be required to do a full blown appraisal. But there are some programs that will allow for a refinance even if you owe more than what the home is worth.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-16-2010, 04:49 AM
 
Location: SF Bay Area
11 posts, read 30,828 times
Reputation: 13
Quote:
Originally Posted by VictorBurek View Post
There is a possibilty of being able to refinance without an appraisal. When a loan is ran through automated underwriting it basically determines what type of appraisal is required. There are 3 possibilities. 1. full blown appraisal with value 2. drive by without value which means the appraiser drives by your home takes a picture to make sure the house isnt in disarray 3. property inspection waiver without value. The last 2 uses the value that was submitted when the loan was ran as the fair market value. If you home is worth around $200k, but you run it saying it is worth $250k, it will require a full blown appraisal as the underwriting engine does a market anaylsis.

If you are potentially underwater, you will be required to do a full blown appraisal. But there are some programs that will allow for a refinance even if you owe more than what the home is worth.
Thanks Victor.
Yes, my home value has been affected. When I purchased my home back in 2007, I put 20% down, and now, all that equity is gone.

I don't qualify for any of the federal "bail out" programs because previously I ran a check (i.e my loan is not a Fannie Mae loan).

I am in California.

Does a high FICO score and having a stable job for the last 10 years even count these days for a refi, without the lender saying "your current LTV does not qualify" ?

Just looking for some options....

Thanks.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-16-2010, 08:06 AM
 
Location: MID ATLANTIC
8,209 posts, read 20,390,720 times
Reputation: 9477
me4tux,

If you put 20% down, then most likely you have a conventional loan. The next step is to determine if you are eligible for what is called a Refi-Plus loan. Fannie Mae has a refi program up to 125% of the appraised value. It won't be the lowest rate available, but it certainly is less than the rates from 2007.

Please visit this site: Making Home Affordable - Home Affordable Refinance

If you are eligible and your lender does not offer a Refi-Plus loan, shop around. These loans are not restricted to the current note holder. However, be prepared, quite a few are limited at 105%. The higher your LTV, the higher the rate. But calling around the only way to find out if it's worth your while is to have someone work it up.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top