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I have worked for six months to work a refinance through my servicer as I have a Fannie loan. I qualify on all points for the Home Affordable Modification Program but they will not move forward because we are currently unemployed. I have explained to a half dozen people that I am current with a 6+% loan and a 800+ credit rating so it is even a better bet that I would stay current at a rate 2 points lower. I am not looking for a handout or subsidy, just a refinance. No help from any current programs!
Do you have unemployment or any source of monthly income?
You have to have some income to put in Fannie's computer program so it can run numbers and get you down to 31% DTI ratio.
So there is the $2500 in question. I am going to presume, Nerak,that your loan investor is Freddie Mac. Note that you are not receiving $2500 in closing cost assistance, you are merely being allowed to roll the closing costs into the loan. You're still paying for them, but you won't need any money up front.
Do you have unemployment or any source of monthly income?
You have to have some income to put in Fannie's computer program so it can run numbers and get you down to 31% DTI ratio.
I have been living on my retirement savings but they refuse to consider that income. I suggested using a number that is 5% of the portfolio value but they say they don't do that. Both of us are looking for work but have had no luck in this area with 13% unemployment.
I have been living on my retirement savings but they refuse to consider that income. I suggested using a number that is 5% of the portfolio value but they say they don't do that. Both of us are looking for work but have had no luck in this area with 13% unemployment.
That's a rough situation you're in, I'm sorry to hear it.
Unfortunately for you, it sounds like your bank is following the guidelines for this established by Fannie Mae. They simply don't have leeway to to consider retirement savings as income under the Fannie Mae loan mod program.
One thing I learned today is they CAN use income of other people from the household to qualify, even though said other people are NOT on the note. You have to be able to show that the income "has been, and reasonably can continue to be, relied upon to support the mortgage payment." I guess that means you can't just rent out a room to somebody now and then make them part of your household...
That's a rough situation you're in, I'm sorry to hear it.
Unfortunately for you, it sounds like your bank is following the guidelines for this established by Fannie Mae. They simply don't have leeway to to consider retirement savings as income under the Fannie Mae loan mod program.
One thing I learned today is they CAN use income of other people from the household to qualify, even though said other people are NOT on the note. You have to be able to show that the income "has been, and reasonably can continue to be, relied upon to support the mortgage payment." I guess that means you can't just rent out a room to somebody now and then make them part of your household...
I have been told by a broker at a different company that they are able to use this program with a fully documented stated income but apparently CitiMortgage is choosing not to. Do you know if this is truely the case?
You can't get a modification under this program without income. Perhaps the person was talking to you about a refinance.
Income comes from things other than wages... that is the problem I am having. Dollars drawn from a portfolio spend just as good as those from a paycheck. It seems they are happy to process if I could get a minimum wage job but unwilling to consider twice as much from a retirement portfolio.
That is what I don't understand, and yes, the person I talked to may well have been talking about a refinance... it is very hard to get any of these people to compare apples and apples. Most seem to focus on whatever they have on their desk!
I have been at this for months as rates have gone up and the reason I was looking for a refinance through HAMP was because I was told I could not refinance as the value of my property had dropped to or below my loan balance.
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