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FHA short refi assistance.

I recently had my rental house appraised (prop valued at $188k) and it came back 25% ($75k) less than the appraisal two years ago when I finished remodeling and paid off my construction loan. I have never missed a payment, my FICO 545, stable and growing income - $79k/annually + bonus $25k, 67 years old, debt is $7,000/mo. Am I eligible for any FHA short refi assistance? I want to take advantage of the interest rates, but I am struggling to find a lender. Any ideas? Thanks. by constancecarder$$... from Atlanta, Georgia. May 7th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed, but in general, It's highly unlikely with a 545 FICO... very, very few lenders lend below 600.. the lower the score, the fewer lenders willing to take on the risk.. especially someone who is looking for a "Bail Out" type loan product.. Additionally, FHA short refinance loans are for "Primary Residence" type loan's only.. So, it's not available for rentals.. also, you make $8670 per month, but have $7000 per month in debt.. this put's your Debt to Income ratio at 81%.. (my guess is you are not calculating your DTI correctly), but FHA is capped at 45% for borrowers under 620.. .Also, I thought this program was discontinued in December of 2016.. (not 100% sure on this).. The reality is that with a poor credit score, you wont find any assistance.. you might want to consider just doing a short sale and be done with the property.. you obviously would need your lenders cooperation... 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 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 7th 2018
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