Posted on: 09th Dec, 2009 10:29 am
I own a Business, which has been slow for last three years. It is a corporation, and I pay myself with W-2's.
I have been told I do not have to declare myself as "Self Employed"
Now the worse is over and business is starting to turn around. I have acquired 80 K credit card debt to operate the business, which I am personally liable for.
After performing a refi on my home, I want to pay off all credit card debt, and perform some remodeling.
I want to refi my home and add about $110,000 to $150,000 to mortgage. I have good credit, and hi equity in home, but my current debt to income ratio is extremely high.
I want to refi, and take cash out, up to 60% of home value, ie $510,000 now to $660,000 after refi.
Value of Home. $1,100,000
Current Mortgage: $510,000
Current Mortgage Payment: $3,375/mon @6%
Annual Taxes: $7,000
Annual Insurance: $1,600
Recent verifiable income: $3,750/month
Experian VantageScore: 883
What is best way to proceed to obtain Refi, with Hi Equity but such extremely hi debt/income?
I have been told I do not have to declare myself as "Self Employed"
Now the worse is over and business is starting to turn around. I have acquired 80 K credit card debt to operate the business, which I am personally liable for.
After performing a refi on my home, I want to pay off all credit card debt, and perform some remodeling.
I want to refi my home and add about $110,000 to $150,000 to mortgage. I have good credit, and hi equity in home, but my current debt to income ratio is extremely high.
I want to refi, and take cash out, up to 60% of home value, ie $510,000 now to $660,000 after refi.
Value of Home. $1,100,000
Current Mortgage: $510,000
Current Mortgage Payment: $3,375/mon @6%
Annual Taxes: $7,000
Annual Insurance: $1,600
Recent verifiable income: $3,750/month
Experian VantageScore: 883
What is best way to proceed to obtain Refi, with Hi Equity but such extremely hi debt/income?
hi sitemgr!
welcome to forums!
it is good to note that you've maintained such a high credit score. also, with the equity, it would be easier for you to get a refinance. however, most lenders won't approve you for a loan because of the high debt to income ratio that you have. you'll have to improve it in order to qualify for a loan. do not make minimum payments towards your debts. try and pay off as much as possible. as soon as you pay off your debts, your dti ratio would be lowered dramatically. increasing your income can also lower your debt to income ratio. you've mentioned that your business is starting to turn around. this is a positive thing and i hope your income would increase due to this. thus, you've a good chance to lower your dti ratio.
once the dti ratio is lowered, start applying for loans. you can speak to your current lender for a refinance. if you do not get favorable terms, speak to the other lenders of your area. you can even seek a no obligation free mortgage consultation from the lenders of this community. this will give you an idea whether or not you would get a loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
it is good to note that you've maintained such a high credit score. also, with the equity, it would be easier for you to get a refinance. however, most lenders won't approve you for a loan because of the high debt to income ratio that you have. you'll have to improve it in order to qualify for a loan. do not make minimum payments towards your debts. try and pay off as much as possible. as soon as you pay off your debts, your dti ratio would be lowered dramatically. increasing your income can also lower your debt to income ratio. you've mentioned that your business is starting to turn around. this is a positive thing and i hope your income would increase due to this. thus, you've a good chance to lower your dti ratio.
once the dti ratio is lowered, start applying for loans. you can speak to your current lender for a refinance. if you do not get favorable terms, speak to the other lenders of your area. you can even seek a no obligation free mortgage consultation from the lenders of this community. this will give you an idea whether or not you would get a loan.
feel free to ask if you've further queries.
sussane