Re-finance question....

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Re-finance question....

Post by Bill » Fri Jul 09, 2004 7:40 pm

I own a 1993 Dutch home (doublewide) on private property, we bought it last year, and the title has been absolved (proper terminology??). I'm wanting to refinance to do some debt consolidation, but am running into dead-ends with most all lenders.

I basically have 2 problems: the first is an issue of time. It has only been about 8 months since we bought this place, and most banks don't want to talk to you unless it's been at least 12 months since the purchase. That problem would take care of itself in a few more months. The other issue is that just about all lenders won't do cash-out refinancing (even for debt consolidation) on a manufactured home. We have pumped thousands into this house to improve it, and it has been well worth the effort, but we would really like to unlock the equity to consolidate debt. Those who WILL actually do cash-out refi will only go up to about 75% LTV on a manufactured home (and some only 50-60%), but I really need 90-95% to accomplish what I want to do. I've been told that if I were purchasing it, a 95% LTV would be no problem. Makes no sense to me, since I am, in fact, "purchasing" my own home even if I am refinancing it.
I had a bankruptcy that was discharged in Oct. 2001, and have had lots of credit since then, including 2 mortgages. Not sure what my credit score currently is, but it was in the neighborhood of 685 last Oct. when we bought this place. My income has taken a substantial hit this year, but the numbers should still be right with regards to income/debt ratio for what I'm looking for.

Anyone know of any lenders who can help me with a 1st or even a 2nd mortgage? The other issue is, I really only want about a 12 year loan. I'll go 15 if I have to, but would prefer 12.

Thanks for any help or info!! - Bill

Richard Cooper

Re: Re-finance question....

Post by Richard Cooper » Sun Jul 18, 2004 9:40 am

Bill, I empathize with your problem which is one shared by many thousands of folks in a similar situation. As Marketing Director for a Charleston (SC) mortgage
brokerage I established a Special Manufactured Housing Division which has been primarily focussing on construction-to-perm loans for factory-built MODULAR houses.

However, we do also offer mortgages (purchase and refi) for qualifying folks with d/wide or triple wide manufactured homes.

Have you recently checked with a realtor in your area to find out what comparable types of real estate (d/wide of SAME year and lot size) have actually been SOLD
for? What would a LOT of similar size and area SELL for today?

If you happen to live in South Carolina give me a call at 843-762-2384. If out of State give me an email of which State you live in and I will advise you of a couple of Lenders who offer re-fi Programs on d/wides IF they are taxed as real property.
Until you know for sure whether your objectives can be met a piece of advice...
do not add any more monthly paid instalment or credit card debt to your existing obligations and certainly do NOT have your credit "pulled".

Any current monthly paid finance obligation with fewer than 10 monthly payments left is NOT counted in your Debt Ratios. However, every time your credit report is "pulled" that can knock down your score anywhere from 5 - 10 points.

Best of luck


Re: Re-finance question....

Post by Bill » Sun Jul 18, 2004 10:07 pm

Thanks for that good info, Richard. I'm in Michigan.
Just pulling your credit can knock it down 5-10???? :-O
I didn't realize just having it pulled could have that much of an impact on it. I will certainly be more careful!! Maybe there's one more thing you could tell me: How long does it take to "recover" from a credit check? In other words, if someone did pull my credit, how long before I get my 5-10 points back, assuming no other changes in my credit?
Thanks again - Bill


Re: Re-finance question....

Post by rmurray » Tue Jul 20, 2004 3:29 am

Your FICO score might be effected by checking credit..or it may not...The company that sells the credit scores to lenders..Fair Issacson..has a good web site explaining the scoring system...

You might want to check here for an accurate explanation of how the system works.. ... quires.asp


Re: Re-finance question....

Post by Bill » Tue Jul 20, 2004 10:20 am

Thanks Murray, I will check that out! - Bill

Richard Cooper

Re: Re-finance question....

Post by Richard Cooper » Fri Jul 23, 2004 6:29 am

I posed that question to one of our credit counselors who responded that it could take anywhere around 120 days for any "credit-pulled score dip" to recover.

One would think that Lenders would mitigate credit inquiries when an applicant is "in the market" for financing offers and a few will accept an appropriate explanation.



Re: Re-finance question....

Post by Mark » Sun Jul 25, 2004 8:29 pm

Credit reports pulled for mortgages within a certain time frame are only counted once. I THINK it's 45 days, but don't quote me.

That means if you go to 5 different banks over a the course of a month, and each pulls a credit report, it's only counted once. Lenders understand that you are shopping for the best rate and terms, not trying to obtain multiple mortgages.

Or, do what I did, pull your own and give it to the bank and let them know, here's my current credit report (get all 3), based on this, what can you do?

Consumer requested reports aren't counted at all, BUT, the FICO score you get and the FICO score the bank comes up with will probably not be the same (in my case, the banks FICO was actually higher).

Vik Bagai

Re: Re-finance question....

Post by Vik Bagai » Sat Jul 31, 2004 11:55 am

I am looking for a construction to perm wholesale lender in California
Citi and Washington have pulled out of the market so we have a backlog
of clients looking for financing.


Re: Re-finance question....

Post by Bill » Tue Aug 24, 2004 11:18 am

I managed to refi and get what I wanted from Amera-Quest Mortgage. Very simple & straightforward process, and talk about FAST! I actually closed the day after I applied, and the money was disbursed one week later. They didn't balk at the fact that it's a manufactured home, and in fact would have loaned up to 90% LTV on it. I ended up going 80% because the tax-based valuation was higher than I thought.

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