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After filling out the HARP 2.0 application, I was laid off. Can I still qualify?

After filling out the application and getting things started for the HARP 2.0 refi, I was laid off with a small severance package. I have since secured another job, will start Monday. However I will be making about 12,000 less than before. Will this ruin my chance at refinancing with HARP? I have excellent credit, application for refi is with the bank that originally secured my loan. Worried about the job situation....It is even more important to lower my monthly payment now that my income has decreased. Thanks. by kristi_196_996 from Springdale, Arkansas. Jul 6th 2012 Reply


Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions

The answer to your question is: Does your current level if income support your debt load. If your current bank tells you no, don't give up. Work with a local Mortgage Banker/Broker instead. Certain banks have more restrictive requirements, called overlays" than others. A Mortgage Banker/Broker is going to have access to many more sources than your stuffy Big Bank. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jul 6th 2012
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

You should be okay as long as your new job is in the same line of work. Most likely they will have to qualify you with the new income and a letter from your new employer that your job is secure for the next year.

Jul 6th 2012
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Robert Le (robert_le)
#623 ranked lender in California - 36 contributions

The new job must be in the same line of work and most lenders require you to work there for at least 3 months because 3 months is like the probation period. the lender will need to qualify you with the new income. I recommend going to a mortgage broker instead of a lender like BofA, Wellsfargo or Chase, since the mortgage broker work with multiple lenders. The mortgage broker can find you a lender that will fit your needs.

Jul 6th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#58 ranked lender in Georgia - 807 contributions

Debt to income ratio's are running to a max of 65%, so if job is similar and rest of file is solid then you should be fine

Jul 6th 2012
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

Both answers you got are great. speak to a mortgage broker and not a big bank. Good luck!

Jul 6th 2012
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