Three days before closing on your home, you should get a closing disclosure from your lender. This document shows all finalized costs associated with your loan, such as: Cash to close Closing costs Estimated taxes, insurance, and assessments Interest rates Up Next: 5 Essential Tips For Saving During An Emergency Before you finally close on […]
Options for Borrowers Who Do Not Qualify for HARP in St. Louis
There are still many homeowners that would like to refinance but do not qualify for the HARP in St. Louis. However, what they don’t realize is that there are other options to refinance a negative equity mortgage. If your loan is backed up by the FHA or VA and you have kept up with your mortgage payments, you can easily refinance your “underwater” mortgage. Both of these loan types offer what is known as “streamlined” refinancing, which enables you to automatically get approved to refinance your loan. It doesn’t matter how “underwater” you are on your mortgage, if you keep up with your payments you are guaranteed approval. It is also unncessary for lenders to look at credit scores, appraisals, and proof of employment. The main criteria for VA and FHA streamline loans is to verify that you haven’t missed a mortgage payment in the past 12 months. As for the FHA loan, you cannot have missed a payment in the past six months or have had a late payment in the past 12 months.
There is also a similar streamlined refinance that is available for USDA loans. The downside is that this option is a pilot program and only available in 19 states. An obstacle in refinancing through HARP in St. Louis is that it is only open to a mortgage that is backed up by Fannie Mae and Freddie Mac. This leaves out a lot of mortgage originations done before the financial crisis. These early loans did not qualify for FNMA and FRMC backing (i.e. state income and option ARMs).
If you don’t qualify to refinance through HARP in St. Louis, check out other options by contacting us today. If you do qualify for the new program HARP in St. Louis, we can have our experts help you get started on the process.