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Is Refinance Possible with a hight LTV?

I have a Fannie Mae loan, $200K left on loan, havent missed a payment, and have no credit issues. We have spoken to two lenders and the first said they dont deal with fannie mae refinances, the second said we would need an apprasal because the value of the home according to their computer was $115K. Houses in the neiborhood are for sale at $145K so I am not sure why the value is comming in so low, other than a short sale that went for $85K. At this point are we stuck with our 7% intrest rate? Where do we go from here? by nmell93 from Phoenix, Arizona. Nov 28th 2012 Reply


Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 663 contributions

I am able to lend in AZ. First off, if your loan is Fannie Mae owned and it closed prior to June 1, 2009, there should be no reason why you can't do a HARP refinance. Even if an appraisal is required (unlikely), it doesn't matter what the value is in relation to your mortgage. The problem may be that you have contacted the wrong lenders who have their own "overlays" to the HARP program. This is the way overlays work: Even if Fannie or Freddie say that they will allow certain elements to be waived (i.e. loan vs value), it does not mean that individual lenders must do them. You have to find a lender who is a direct seller to Fannie/Freddie that follow their guidelines to the letter. We are. Please feel free to contact me at barb.lanis@1amllc.com or 630-660-8868

Nov 28th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

If you meet the criteria for a HARP refi, link is http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx to see, then you might have options. The issue you will likely have here is your LTV as you mentioned. Even though the HARP program has no cap on LTV the fact is that they don't lend money through the HARP program and the lenders do, so each lender has their own rules called overlays and most lenders will not go over 105% LTV even on a HARP refi and you are at 142.5% LTV according to the numbers you have posted here. Some lenders will go that high but very few so I would go to the top of the page and click on the "Find a Lender" tab and start calling people to see who is willing to go that high on a HARP refi.

Nov 29th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,894 contributions

If your rate is 7.00%, it is likely your loan originated before May 31, 2009. If so, it does not matter what your home is worth, we can do a HARP refi for you. Give me a call or visit my website to check out my credentials and to get going on your refinance. I'm in Chandler. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Nov 29th 2012
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Timothy Gray (insistontim)
#191 ranked lender in California - 15 contributions

To be eligible for the Fannie Mae HARP 2.0 program that we'd need to use for your unique situation we would first need to confirm that you loan was sold to Fannie Mae prior to May 31st, 2009. The program does require that we qualify with full documentation of your income and even if the appraisal is returned with the the lower of the values mentioned in your comments we could still utilize the program to complete your refinance.If you'd like to review this option further you may call me at 619 283-4000 x.2226 my name is Tim GrayI look forward to hearing from you and getting your new loan taken care of for you.Kindly,Tim GrayMortgage Alliance Group619 283-4000 x.2226tim@mortgage-alliance.net

Nov 28th 2012
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Jonathan Rhode (jrhode)
#184 ranked lender in California - 130 contributions

Feel free to contact me at 877-401-1389 xt 103 or jrhode@cstonemortgage.com . I have an investor that will go up to 150% ltvJonathan

Nov 28th 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

Find another lender! If nothing else, your current servicer should be able to help you but you might get a better rate and terms through someone else.

Nov 29th 2012
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