#0 ranked lender in
It sounds like to me that who ever you are talking to does not want to, or can't refinance you into a new second lien (big banks don't do 2nds), so they want to leave the second lien alone (subordnate). In doing this, you may not have enough room in the 1st lien position to roll in all of your closing costs, so you would need to come out of pocket whatever that $$$ is. You need to find a lender that can do 2nd liens so that they can combine both your old loans together, add all your closing costs to that number, and come up with a new 1st & 2nd lien (A 80% first lien and whatever % number needed as your 2nd lien). Doing this will prevent you from having to pay PMI by going Convientional. If you go FHA, then as you know, you will have MI. The only other issue that could be at hand is your overall credit. What are your scores? Or maybe it's the type of property you have, you have not mentioned this in your past emails, but is this a SFR, Condo, Duplex, 4 plex? Is this your primary residence, investment property, or commerrcial property? Give us a little more info.