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Can I refinance my loan from FHA to Conventional with stated income?

I am currently in an FHA loan and need to refinance to a conventional. Our FHA will not allow for a co-signer. My income alone was enough to qualify originally but now that I am part time and my husband is 1099 for the last 10 years, we cannot get refinanced under FHA and I was told we might be able with Conventional. Any suggestions are welcome. by BlueBell22_Brad867 from Aspen, Colorado. Apr 20th 2018 Reply


The only true stated loans will most likely end up being a higher payment than your FHA payment and won't be conventional. If you have significant liquid assets, there are banks that will "deplete" the assets over 30 years to determine income for a conventional loan. Or, if you have worked part-time for 2+ years, you could use that income along with the 1099 income to try to qualify. Maybe bring some money to the table? One last thought, maybe just keep the FHA for a while until you can qualify? It may not be the worst path to take. We are in Boulder. Call anytime if you would like to talk over ideas. Robert with Colorado Lenders, inc. 303-578-9202

Apr 20th 2018
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Chris Neuswanger (mtnmortgageguy)
#93 ranked lender in Colorado - 87 contributions

Stated income on a conventional loan is very expensive and hard to do. I do not know who told you FHA would not allow for a co-signer, we have done many FHA loans with co-signers. You might also qualify for a FHA streamline refi which generally does not require income verification. Please feel free to call me at 9790-748-0342 and discuss your situation in detail as every loan is like putting together a jig saw puzzle. Been doing this for over 20-years so I know a thing or two! I won't be in this weekend but the above number rings through to my cell and I try and I usually can pick up, if not I'll call you back shortly if you leave a message. Chris Neuswanger www.mtnmortgageguy.com

Apr 20th 2018
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Brad Jamison (Brad_Jamison)
#83 ranked lender in Colorado - 18 contributions

Not sure who you are talking to but FHA does allow non-occupant co-borrowers (co-signer). You can't do an FHA "Streamline Refinance" and add a co-applicant that was not on the original loan but you can do a full refinance with a non-occupant co-borrower at little or no cost. We also have alternate programs for self-employed and 1099 contract employees that are not stated income but we can use bank statements, etc. Would need to know more details. Please feel free to call me with any questions at 970-232-2976.

Apr 20th 2018
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,791 contributions

Based on the information here, I strongly suggest you apply with someone else. FHA allows for non-occupant co-applicants. Plus FHA offers a streamlined refinance program. You'll want to get a second opinion and explore those options before even remotely thinking of non-traditional loan options, which come at dramatically higher interest rates. For this situation in MN, WI, or SD, visit me at JoeMetzler.com/fhaloans.htm

Apr 23rd 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,455 contributions

Hum... FHA allows for a streamline refinance where income is not considered.. so, if you are going from FHA to FHA, you shouldn't have a problem.. This is in relation to rate and term refinance only.. if you are looking to pull cash out, then you will need to document your income. As far as "stated income".. those loan's do not exist.. in fact, they are illegal. The Financial Reform Bill HR4173 signed into law by President Obama on 8/1/10 outlaws stated income and no doc loans. Section 1411 reads: ''(4) INCOME VERIFICATION.--A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability, including expected income or assets, by reviewing the consumer's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income or assets. Government loans such as FHA, VA, USDA, in some instances, will waive "proof" of income for rate and term refinance loans only because you have demonstrated your ability to repay, by repaying your existing loan. But none of these programs will allow stated income.. Now, there are some hard money lenders who will use your bank statements instead of your tax returns, as proof of income.. but these loan products are offered by soft to hard money lenders.. expect rates to be much higher than what FHA allows.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 23rd 2018
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Mike Shaw (MikeShaw)
#180 ranked lender in Colorado - 9 contributions

The simple answer is no, however others are correct, it depends on what you are trying to do. There are some loans that offer "stated-like" options that may have slightly higher rates. If your FHA rate is in the low 3's it may be worth keeping. I will run a free analysis and show you hard numbers without checking your credit, or requiring docs etc., just good friendly advice and access to my proprietary Loan Analyzer. I work exclusively in Colorado. Let me know if I can help!

Apr 26th 2018
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