Refinancing a Underwater Investment Property

Good Morning. If the loan is FHA Insured, you have options up to 97.75% LTV for the refinance. If this a Fannie or Freddie loan, you can get up to 75% typically, possibly 80% LTV may be an option. You need to determine the Cost to Benefit on this property and decide if you have the cash to bring the loan amount down, if it is worth it to obtain the new rate. I'd be happy to look at this scenario in more detail with you directly if you'd like. Just message me offline if you want direct help! Thank you!

If it's and FHA you can Streamline it, if not check with the lender. Some Credit Unions have their own programs will allow up to 100% LTV.

If this a Fannie or Freddie loan, the guidelines allow for a maximum of 85% LTV.

I don't lend in VA but can at least offer some advice. If your current loan is FHA it is possible to do a 'streamline' refinance without an appraisal. If it is conventional, (either Fannie Mae or Freddie Mac), the loan is too recent to qualify for the existing HARP program. Currently a mortgage would need to have been securitized prior to 6/1/09. Congress is toying with a new version of HARP, dubbed HARP3, which may allow you to refinance without an appraisal if it also extends this securitization date. If and when that happens you should understand that many lenders put their own restrictions on these loans. In my market most of my competition won't lend over 105% of the Fannie/Freddie estimated value on an investment property. My company doesn't have any limit. Best of luck to you!

If your loan is owned by Fannie Mae, Freddie Mac, FHA, VA or USDA we should be able to either do a HARP 2,0 refinance or a Streamline refinance. I can go over all of your options with you over the telephone. P: 888-320-7888 - www.MortgagesforAmerica.org - Ken Burrows

I DO have a possible solution for you.. who is your bank/ servicier?? linda yourloanpartnerforlife@live.com

If none of the excellent options mentioned already help you, you can consider contacting your lender for a modification. A modification without any late payments previously, can be far less detrimental to your credit and you can perhaps get intoa payment that is affordable. They will want to review all your income documentation, etc. as if you were applying for a loan.In spite of all the nightmares you may have heard on people seeking a modification, it is not as difficult as it once was.You will need to record on paper or the phone (inf allowable) every exchange with a bank rep. you have. Anything you send injust keep meticulous records of. One key will be that your overall debt to income ratio is currently too high. I have one clientwho successfully got a modification of their primary home with no late payments ever and no derogatory credit. Their second home...we managed to refinance previously. It took them about 6 to 7 months to get the modification accomplished.

Well, with the date you refinanced at last you wouldn't be eligible for harp. Paying it down to 100% ltv wouldn't help in this case. But depending on your current mortgage type there may be some other options to consider, what type of mortgage are you currently in?