Question by caligrl: Could someone in this scenerio qualify for a mortgage refinance?
The guidelines have gotten tough, but what about the following:
income filed makes debt to income ratio high
since we can’t do stated anymore (that I know of) is there any hope or programs?
Add your own answer in the comments!
A lot of factors go into qualifying. What is the loan to value? Take the amt owed on current mtg divided by value. There is a new program called refi plus that lets people go up to 105% of value. Secondly, the debt ratio is usually maxed at 55% as determind by desktop underwriting system. If there are compensating factors it may allow 56% debt ratio etc. If you have lots of reserves in a 401K etc, good pymt history those thing offset the higher ratios.You should have your mtg broker or bank run your scenerio thru Desktop underwriting to see if it’s approve elig. Also, underwriting does use the bottom line on self employed borrowers however certain items that were deducted can be added back to your income thus giving you more income to qualify.