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Old 02-17-2010, 01:11 PM
 
1 posts, read 5,004 times
Reputation: 10

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i am trying to refinance my home with cash out. I have a consumer credit score of 727, lowest of the 3. My mortgage gets another credit score of 643/660/690. I make over $80K a year. Been in my house for over 11 years. Bank had appraiser come out and appraised my house at $190K, I owe on mortgage (guardian-fanny mae) 102,509 (7 yr arm fixed due this 11/2010) and my home equity is 21, 853. They got me in at 5.5 % pay 1.5 points. The real kicker here is, last October I was going to sell my house, it was listed only 3 days on MLS, I paid the terminate with the realtor. Now my LTV went from 78.82 to 70% and now cannot do cash out. I explained to them, it was under emotional duress from empty nest syndrome, I changed my mind as what I owed on the house I can never find another home like that. So I told the realtor as I just told the mortgage company I have been with for over 11 years I decided to make this my retirement home.

Guardian is telling me I have to wait till May. It clearly states it was listed only 3 days.

Is there somewhere else I can refinance with that I can get cash out, I need to do some home improvements, and get out of this 7 year fixed ARM that is expiring this year without all this have to wait crap! Does not one's payment history matter to anyone?!

I am not sure why my score is lower from a consumer to a mortgage perspective. I am a single mom, is that the reason? I have only 1 credit card and I car payment.

I need direction, what other mortgage companies will see that this 3 day listing was just a mistake and I have been in that house since 1997 and intend to stay in...why the hell would I ask to refinance with cash out? Or should I just refinance my balance and get a home improvement loan? Either way, I don't have any children expenses and well...got alot more money left over each month. I need a retaining wall done ASAP to prevent my foundation from cracking , insurance won't pay if that happens, and want to prevent further decrease in value of home.

So here I am preserving my home and with a 3 day MLS listing I am getting the no to refinance. THis new regulation is really screwing with the middle class workers with great payment history on all loan, credit card, etc... obligations.
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Old 02-17-2010, 01:44 PM
 
Location: South Jersey
322 posts, read 488,080 times
Reputation: 259
Quote:
Originally Posted by lizzientexas View Post
i am trying to refinance my home with cash out. I have a consumer credit score of 727, lowest of the 3. My mortgage gets another credit score of 643/660/690. I make over $80K a year. Been in my house for over 11 years. Bank had appraiser come out and appraised my house at $190K, I owe on mortgage (guardian-fanny mae) 102,509 (7 yr arm fixed due this 11/2010) and my home equity is 21, 853. They got me in at 5.5 % pay 1.5 points. The real kicker here is, last October I was going to sell my house, it was listed only 3 days on MLS, I paid the terminate with the realtor. Now my LTV went from 78.82 to 70% and now cannot do cash out. I explained to them, it was under emotional duress from empty nest syndrome, I changed my mind as what I owed on the house I can never find another home like that. So I told the realtor as I just told the mortgage company I have been with for over 11 years I decided to make this my retirement home.

Guardian is telling me I have to wait till May. It clearly states it was listed only 3 days.

Is there somewhere else I can refinance with that I can get cash out, I need to do some home improvements, and get out of this 7 year fixed ARM that is expiring this year without all this have to wait crap! Does not one's payment history matter to anyone?!

I am not sure why my score is lower from a consumer to a mortgage perspective. I am a single mom, is that the reason? I have only 1 credit card and I car payment.

I need direction, what other mortgage companies will see that this 3 day listing was just a mistake and I have been in that house since 1997 and intend to stay in...why the hell would I ask to refinance with cash out? Or should I just refinance my balance and get a home improvement loan? Either way, I don't have any children expenses and well...got alot more money left over each month. I need a retaining wall done ASAP to prevent my foundation from cracking , insurance won't pay if that happens, and want to prevent further decrease in value of home.

So here I am preserving my home and with a 3 day MLS listing I am getting the no to refinance. THis new regulation is really screwing with the middle class workers with great payment history on all loan, credit card, etc... obligations.
[SIZE=2]Okay Lizzie here we go..

No such animal as a consumer score vs. a mortgage score..your FICO is your FICO, period. You can get these score directly from the reporting agencies, or use a pay service.

Secondly since I don't write loans in TX, I would defer to a local broker for a 100% rock solid answer, but if Guardian is telling you that you have to wait until May, then you're stuck. Making a poorly thought out emotional decision is unfortunately not an acceptable override for government regulation.

Making credit decisions based on a person's marital and familial status is against the law, to answer your 3rd question. It's in the text of 2 regulations (equal credit opportunity act, and fair lending act) so if you find yourself discriminated against, by all means press charges.

The regulation that is causing you so much angst is there for a good reason. It prevents speculators from participating in unethical "flipping" and prevents potential bribery situations. So while it may an inconvenience to you right now, the protection is in place for good reason.

I wish I had better news for you. good luck!
[/SIZE]
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Old 02-17-2010, 04:13 PM
 
Location: Wake Forest, NC
835 posts, read 3,672,178 times
Reputation: 648
The credit score difference is probably due to 2 different scoring systems. Many time when you pull your own it will give you the Advantage score which has a range from 450-950 while commercially(anytime you apply for credit) your FICO is used which has a range of 350-850. When qualifying the middle of the 3 scores are used no matter the bureau.

As far as the cash out waiting period it is a Fannie/ Freddie guideline. It is because people were cashing out of houses they couldn't sell then bailing on them. If you can find a small community bank or a lender that portfolio's its loans ( doesn't sell to fannie/ freddie but keeps them on their books) they may not have this guideline.
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Old 02-17-2010, 05:46 PM
 
Location: Lending in all 50 states
189 posts, read 732,917 times
Reputation: 109
Hi Lizzie,

You may want to try an FHA loan instead of a conventional Fannie Mae or Freddie Mac
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Old 02-17-2010, 07:46 PM
 
Location: Plano, Texas
1,676 posts, read 6,535,262 times
Reputation: 688
Quote:
Originally Posted by nmb30 View Post
Hi Lizzie,

You may want to try an FHA loan instead of a conventional Fannie Mae or Freddie Mac
In Texas you cannot do a cashout on a any government loans, has to go conventional. Most lenders are requiring now that if a home is listed for sale you must wait 6 months before you can pull equity out.

Texas has very strange home equity laws which has helped our state with home values during the last couple years. For one, when accessing cash you can only go to 80% of the appraised value. Once you pull equity out, you cannot do another refinance for 1 year. As stated earlier, you cannot do any FHA or VA cashouts in Texas.
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Old 02-18-2010, 07:54 AM
 
Location: South Jersey
322 posts, read 488,080 times
Reputation: 259
Quote:
Originally Posted by VictorBurek View Post
In Texas you cannot do a cashout on a any government loans, has to go conventional. Most lenders are requiring now that if a home is listed for sale you must wait 6 months before you can pull equity out.

Texas has very strange home equity laws which has helped our state with home values during the last couple years. For one, when accessing cash you can only go to 80% of the appraised value. Once you pull equity out, you cannot do another refinance for 1 year. As stated earlier, you cannot do any FHA or VA cashouts in Texas.
That's why I deferred to a local subject matter expert, good info Vic
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Old 02-18-2010, 09:29 AM
 
4,891 posts, read 12,215,183 times
Reputation: 3639
There are different scoring models. I have seen borrowers come in with credit reports they did on their own only to find that my tri-merge mortgage report is considerably different.

There are lenders who don't have the 6 month wait rule for a property that was listed and others that will do an exception with a good explanation. This is not a Fannie Freddie requirement. Go find another lender.
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