Posted on: 01st Oct, 2008 12:37 pm
it has been recommended to me that i should refinance my current va loan into a fha loan. currently i have a va loan and the new home being built was suppose to be a va loan but you are not allowed to have 2 va loans. my house hasn't sold and probably won't sell in time for the closing of the new home. the company i am dealing with (builder's in-house mortgage) told me to get a fha loan but not to tell the lender about my new mortgage because it isn't on my credit report and hasn't closed yet. with both loans the debt to income ratio can not be underwritten, i have one denial already. they told me to go to another lending institution but not mention the new home. once i get the va loan released buy refinancing fha i would reapply for va eligibility. does fha require you to live at the property? i guess i could pull it off the market then put it back on once i get fha financing, but that sounds fraudulent. any advice? thanks
What this lender is telling you to do is fraud. You should report them for suggesting you put yourself in that situation. Knowingly putting you into a home that you cannot afford or counseling you to do so is illegal and should be stopped.
You can have an FHA mortgage if you prove you are moving a reasonable distance away from your previous home due to relocation. Or you are upgrading.
Under the new rule, you can turn your primary into a rental, but you need to have 30% equity in your primary to have it not count in your ratios with the offsetting of the debt by rental income. You would have to pay for an appraisal on your current residence.
VA & FHA rates are almost the same, so it would not be beneficial to you to refinance an FHA into a VA. You might be saving mortgage insurance per month, but think about all the closing costs you would have to pay, and more than likely you would have to come to the table with money b/c your property won't have accumulated equity.
If you go to a lender, be truthful. You don't want to get caught juggling two mortgage payments and not being able to afford them.
You can have an FHA mortgage if you prove you are moving a reasonable distance away from your previous home due to relocation. Or you are upgrading.
Under the new rule, you can turn your primary into a rental, but you need to have 30% equity in your primary to have it not count in your ratios with the offsetting of the debt by rental income. You would have to pay for an appraisal on your current residence.
VA & FHA rates are almost the same, so it would not be beneficial to you to refinance an FHA into a VA. You might be saving mortgage insurance per month, but think about all the closing costs you would have to pay, and more than likely you would have to come to the table with money b/c your property won't have accumulated equity.
If you go to a lender, be truthful. You don't want to get caught juggling two mortgage payments and not being able to afford them.
shady, shady, shady - you'd think that in this economy and in this market, there'd be a drastic reduction in those types; but i suspect just the opposite will take place. as times get more difficult, slimy types tend to try to find newer and slicker ways to get over on what they perceive to be "the system."
elnora is right (glad she decided to join us); fraud needs to be dealt with appropriately, and you should never put yourself in harm's way.
elnora is right (glad she decided to join us); fraud needs to be dealt with appropriately, and you should never put yourself in harm's way.
Thanks for the replies, it is very shady and basically from what I have been gathering is that I will commit mortgage fraud on the occupancy clause. The builder is putting a lot of pressure but not enough for me to commit fraud. Trust me I do not want to go down that road. The house is about one mile from my current residence, so I don't think I can around that. Thanks for your time.
If you go the honest road, something might work out for you, you never know what kind of things lenders can do .. the right way.