Refinancing a second home which is leased
I currently own a home that was purchased as my primary home in 2006 with a 6.85 interest only on the first mortgage and an equity line of credit with interest only and it is a Fannie Mae loan. I had to relocate for a new job and purchased a smaller home meaning to sell the first home. With real estate prices decreasing I have been unable to sell my first home since my equity has dwindled significantly. It is worth about the same as what I currently owe. So I have leased it for the past 18 months. My primary residence I am living in now has an interest rate of 5.25 and is a FHA loan. I have excellent credit with a score of 765. I can't seem to find a mortgage company willing to refinance the first home since it is not my primary residence and is leased. Any suggestions? Even though I pay extra on the first home, I am not getting anywhere in paying off the principal. by royalt_594_915 from Fort Worth, Texas. Nov 14th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Hang in there.. under the revamped HARP program (details to be released the 15th of this month) you should be able to refinance. contact a local mortgage broker, not a bank and apply with them, they have access to multiple lenders with different programs and guidelines.. they should be able to match you with a lender for your particular scenario. ... WilliamAcres.com
Brian French (bfrench)
#11 ranked lender in Arkansas - 58 contributions
Good afternoon! The issue is not the leasing. The issue is the loan-to-value. If you would like to review this issue privately, please contact me at bfrench@topflitefinancial.com.Thanks,Brian
Brad Cahoone (info@globalhomefinance.com)
#87 ranked lender in Texas - 1,042 contributions
Good afternoon. Since the loan is Fannie Mae already we can go to 125% Loan to Value today no problem. As it is a non-owner occupied (investment property) the restrictions for LTV become prohibitive at many lenders, but we have a couple that do not put overlays on for that. The only concern is if you have mortgage insurance or not on the existing loan. Please call me so we can discuss further.Brad Cahoonenmls id# 184176bcahoone@globalhomefinance.com972-724-3222globalhomefinance.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
President Obama announced a revamp of the HARP program several weeks ago. They are supposed to be announcing the details of the changes this week. Based on rumors and leaks, you would be the perfect candidate for a refinance. Because this was your primary residence when you bought it, and have not been late (one late is allowed) in the last 12 months, you should be able to qualify. Once the announcement is made, contact a local Mortgage Banker or Mortgage Broker in the area where the home is located.
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