There are many reasons that you may not qualify for a mortgage loan. The reasons vary from property issues to ratio barriers. The most common current property issues have to do with falling home values. Many people are upside-down in their homes, that is, their mortgages are more than the value of their home.
Other property issues are more bizarre. You might be trying to refinance your home but also happen to maintain a working goat farm in the backyard.
Most lenders will fail to approve you for a mortgage. Maybe you pay your property taxes to the Department of Motor Vehicles. Fail. Maybe you live in a geodesic dome. Fail.
Maybe you own a log home and the nearest other log home is 50 miles away. Fail. Maybe built a bungalow in a neighborhood comprised of million dollar homes. Fail. Maybe you built a million dollar home in an area comprised primarily of bungalows. Fail. Maybe you turned your double-wide on it’s side so you would have a double-high. Fail. Maybe you converted the first floor of your home into a combination tax service and bait store. Fail.
There are some new government programs available to homeowners who have either a Freddie Mac or Fannie Mae loan. They can refinance up to 125% loan-to-value. That is, the amount owed on their mortgage could be 25% more than the value of their home. These homeowners could refinance at close to conventional rates as long as they have only one mortgage (no 2nd mortgage or Home Equity Line Of Credit) and meet the normal qualifying criteria of income, assets, etc. If you fall in this category, it is definitely time to refinance.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
