Can it be done: Refi with no appraisal ? (loan, interest rate, California)

[me4tux]

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...

[VictorBurek]

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.

[me4tux]

Originally Posted by VictorBurek

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.

[SmartMoney]

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.