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Hello again fellow ActiveRainers,

I am again wanting some advice and hoping you guys might be able to help me figure this one out! That's what I love most about this site!! Anyway, I have a lady who we have been trying to do a loan for now for almost a month. She has a 663 FICO, makes plenty of money and it's a simple owner occupied, primary residence refinance. WELL she thought her home was worth a certain amount and was sure enough that I just went off of the value she gave me to write the loan. We HAD a 79% LTV and everything looked beautiful! It seemed like it was set in stone! We were ready to close it last Friday and then all of a sudden, the appraisal comes in $27K BELOW what we needed to get her financed at 80% LTV. I now need to find a bank that will do 97% financing. Is there such a thing anymore? She has good credit! She's never been late on her mortgage, but is a victim of the sub-prime 3/27 ARM fiasco and is stuck in an adjustable rate mortgage that just keeps going up! She already lost the money for the appraisal and eventually she will loose the house. She can barely squeak by now with the payment she has and it will only GO UP!!! Where do I take this loan? There has GOT to be somebody that still goes above 95% or who might do an exception!!

Anyone know anybody? 

Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO
Check you loan limits for FHA and close the deal (FHA SECURE just might be the answer ).  Best rates and lowest PMI/MI
Apr 24, 2008 06:56 AM
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Real Estate Agent, Home Stager, & Photographer

You will need to find an FHA lender who does "FHA Secure" loans.

Here are the maximum Loan to Value Ratios for the FHA Secure:

States With Closing Costs at or Below 2.1% of the Sales Pirce:

  • 98.75% for properties with appraised values equal or less than $50,000
  • 97.65% for properties appraised in excess of $50,000 and not greater than $125,000
  • 97.15% for properties appraised in excess of $125,000

States With Closing Costs Above 2.1% of Sales Price:

  • 98.75% for properties with appraised value equals or less than $50,000
  • 97.75% for properties apprased in excess of $50,000


Apr 24, 2008 08:15 AM
Mike Smith
Fair Housing Resource Center - Roseville, CA

I agree the FHA secure sound good.  The other option is to find out if the reset of the ARM can be locked in for 5 years provided she has no lates as per the Bush Fiscal Stimulas plan signed into law in February. 

If you are not in declining markets, you could still look at Home Opportunities or Flex 100% if it is just a rate-term refinance. 

Good luck!

Apr 26, 2008 06:21 AM
Erin Newington
5305573559 - Grass Valley, CA
Sierra Foothills Realtor

the only way you are going to get this done is FHA!  Good Luck!

May 02, 2008 04:09 PM
Rivermark Community Credit Union - Beaverton, OR
If you are just talking rate and term then try the my community there are income limitations but it is a great fannie product which offers lower mi than others and should go to 97% on a rate and term. to double check I would go to efanniemae.com and the home page has a my community link.  hope this helps
May 04, 2008 02:51 PM
Kevin Orf
AmRes Mortgage - North Branch, MN
I think your best option is FHA, but if you are not FHA approved the MyCommunity option might work, just like everyone is saying, sorry...
May 06, 2008 06:36 AM
Matt Odell
GVC Mortgage-Carmel - Carmel, IN
Home Mortgage Specialist with GVC Mortgage-Carmel
Slam Dunk FHA..  Get approved if you're not.....
May 06, 2008 07:39 AM
Nathan Gaier
Hallmark Home Mortgage - Fort Wayne, IN
Northeast Indiananulls Mortgage Team
You definitely need to get FHA approved if you're not already.  90% of my business now is FHA because of credit leniency, good rates & high LTV allowances.  Plus, FHA has been paying better than conventional lately.
May 06, 2008 10:05 AM
Nathan Gaier
Hallmark Home Mortgage - Fort Wayne, IN
Northeast Indiananulls Mortgage Team

When someone mentioned My Community at 97% rate/term refi as an option, it will matter if your subject property is an a "declining market" or not.  This can be limited by either the investor or the MI company, whichever is worse.  If it is in a declining market, your 97% just got cut to 92%.

May 07, 2008 07:59 AM
Rivermark Community Credit Union - Beaverton, OR
Great catch Nathan, I am in Oregon and we aren't hit as bad with the declining market we do have select counties that the MI company finds to be in decline.
May 08, 2008 03:16 AM
Joshua Lerette
Tampa Bay Florida FHA, VA, USDA & Jumbo Mortgages - Saint Petersburg, FL
Tampa Bay's #1 Trusted Mortgage Specialist

Everyone keeps saying FHA secure, you don't even need to do secure, regular FHA without the hits would be just fine. It's a rate and term right? Even if the value does not meet the requirements for 97%, you can get the current servicer to hold a second mortgage for the difference. FHA does not have a CLTV limit right now.

May 08, 2008 03:52 AM

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Sep 19, 2015 05:51 AM