No Appraisal Seasoning - Can you help?

leahum · #1 (**permalink**) 01-26-2006, 11:44 AM

I need a sub-prime loan for $90,000 in Michigan with no seasoning required for using appraised value versus purchase price. It's for a rate and term refinance. The borrower bought the home 2 months ago for a lot less than what it appraised for. LTV will be 75. FICO score is 592.

Thanks

Greg · #2 (**permalink**) 01-28-2006, 08:34 AM

I would try to run that through DU or LP under conforming to see if you get a level approval.

You might get you a better rate and yield. I ran a 565 mid through DU and got a level 3 at 7.25% fixed on a 30 yr. 95% LTV purchase.

Fannie has no seasoning but the lender you use may. This loan unfortunately picked a Manufactured home. EAIII and EAIV do not allow Manufactured.

Approved Eligible, EAI, and EAII do though.

But, the negative aspect is the PMI. This was a 62,700 PP and the MI was $180.00 mo. Unfortunately the foundation was said by a 35 year appraiser to not meet FHA but I was told otherwise too late. It had a HUD tag and if they do then they should go FHA but I found out 1 day before the closing deadline.

There is so much to learn. Even 9 years is not enough. I have to keep studying and you must dedicate time daily or weekly to stay on top.

So try and compare it to what you find sub-prime and give your customer options.

Also view this thread who does 4 mo seasoning for appraised value

leahum · #3 (**permalink**) 01-28-2006, 12:46 PM

Thanks for responding, Greg.

I thought about running it through the conforming world, but I think we need to use stated income due to the fact that the borrower is a barber with limited income on his 1099. I need to wait until he receives his 1099 at the end of the month in order to see if he has enough to go full doc.

Thanks again,

Marcel

Greg · #4 (**permalink**) 01-28-2006, 12:56 PM

Oh yeah if the income is not tight then DU/LP will not help.

HisHouseMortgage · #5 (**permalink**) 01-30-2006, 09:27 AM

Hi Marcel, Where in MI? Lansing here. Have youtried First Franklins Rapid Refi program? Stated income at full doc pricing ( you do not prove any income), Appraisal waived. Not 100% sure about seasoning issues, try calling your rep. If you dont have one let me know and I will have mine call you.
Jim

Greg · #6 (**permalink**) 01-30-2006, 07:37 PM

Sounds like I better look at it too. lol

That is pretty nice.