situation need lender please read

tresaclosing30 · #1 (**permalink**) 07-18-2006, 08:23 PM

let me pick your brain i have a couple that the husband is the primary and he has a 604 mid full doc 2 years out of chapt 7, his wife a 644 full doc 2 years out chapt 7 but she makes very little money. They want to combine 3 loans on their primary into one or an 80/20 but the 20% has to be a heloc. This is a cash out refi house appraises at 235,000 the 3 loans total 210,000. PROBLEM his score will give high interest rate and i need 1 point on this deal, if we put just her on the loan she has to go stated.
i have tried to sell the higher rate explaining the higher ltv and cash out because the rates that i have found is not saving them money, OH and they have to have a 30 year fixed but if rate is decent they will take a 7 or 10 year arm. THIS IS a sfr, owner occ, 95-100% ltv

GLOAT · #2 (**permalink**) 07-20-2006, 03:45 PM

First Franklin, Ownit Mortgage, Option One, Aegis, & Delta Funding all have programs for "Best Middle Score". Most require atleast 30% contribution of total household income from highest score & there are tradeline requirements that highest score must meet if trades are not joint. Also, Novastar averages the average of both borrowers scores(Did you follow that?)

tresaclosing30 · #3 (**permalink**) 07-23-2006, 09:01 AM

thanks Gloat appreciate your time, so I did try FF they want to give them 8.7 par....I forgot to mention that this is a referral and these are "informed" borrowers so this is what they were hoping for the payment not to exceed 1550.00 principal and interest ( really wanted an interest only) to get the deal I promised closing cost will not exceed 5000.00 (that is why i need 1 point) and their arm is almost up so that is why they wanted a longer fixed term to put the equity back into the house, or use it in a heloc...also he is an investor and has 2 noo that he will refi (he says) with in the month of august (he needs money for some reason or another)

GLOAT · #4 (**permalink**) 07-23-2006, 12:03 PM

Sounds to me like you & your clients need to nail down what's most important. Thus far, they want to go 95-100%LTV, combine not 2 but 3 loans, have a low payment, have a fixed rate, & not pay alot. Me too! The world is give & take. If these are "informed" borrowers, they should understand that if he's 2 years out of BK with a 604 mid, he hasn't done everything that he could to improve his situation. Alot of times we can do more for people than they have done for themselves(You get out what you put in), but I would not advise that as your sole business plan.

If this guy has future business for you, make a little less for free advertising. If he's an investor, he won't forget who "made the numbers work" & "small talk at Home Depot" will bring you more referrals than a commercial during Sportscenter.

FYI, First Franklin has 40& 50 year amortization loans as well. 40 year w/.10bps add & 50 year w/.25bps add- Even that, add .25 to that 8.7% for interest only & that 210k at 8.95%I/O-30 Year Amort. @ 1,566.25/month