"HARP 2, Frustrates Manchester, Ct Property Owner”
I am seeing many frustrated homeowners, that are sharing experiences of being denied and not understanding why. The main reason, poor knowledge with this mortgage product.
I received the email below from this frustrated property owner that owns a 3 family, investment property in Manchester, Ct.
Here is the reason this loan was denied. The guideline on non-owner occupied properties work this way. A first mortgage can get approved up to 105% of the appraised value, which is not the problem with this transaction. The problem is the second mortgage. The guideline says the combination of the 1st and 2nd mortgage can’t go above 110% of the appraised value.
If the property is in fact worth $190,000 and the first mortgage balance is $180,000 and the second mortgage is $35,000, then the combined loan to value is 113%. If the appraisal comes in lower than the $190,000, the loan to value gets worse.
The key to getting a HARP or any other kind of loan product, you need to be working with someone that knows what they are doing, otherwise, lots of frustration.
Harp 2.0 - 3 family investment property, excellent credit
I am beyond frustrated with the information I am reading on the internet about what qualifies for HARP 2.0 and only to find out that I do not qualify. Can anyone help?
Here are the details - 3 family investment property, owe $180K on first mortgage with Freddie Mac, $35K on second. Property value is approx. $180 - $190K. Credit score of 800, excellent income, reserves, savings, 401K etc. I recently was told that when they run this property through the LP system that it is coming up as a caution. I can not figure out why or what I can do about it.
The LTV is about 102% which is lower than the 105% limit, the HARP guidelines indicate investment properties qualify so I do not know what the problem is.
Can anyone help or know a lender that actually lends based on these situations. The house is in CT.
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