Refinance my house?

Carroll
We are trying to refinance our home that we purchase brand new for $238, 500. We now owe 224, 300 we wanted to refinance our home to lower our payment. Our original terms were 30 yr jumbo with pmi fixed at 8%. It was a no doc loan. We have never been late on any of our mortgage payments. We recently applied to refinance an we where denied basically, they said that we couldn't afford the house we are in. How is that? How did we get the house in the beginning if according to them we could never afford it. What can we do?

Cherri
Lending guidelines have gotten much stricter since the credit crunch. You may not be able to do what you'd like. Good luck.

Renaldo
To be honest with you, many "no doc" loans could possibly inflate the income-did you look at the loan application to see what income they put on the application?? this is the reason why many lenders are not doing "no doc" loans---and now your income is being verified and liabilities and you maybe over the ratio guidelines that are set by that lender... inquire with your loan officer..

Alina
The terms of loan may have changed in the market place, making your qualifying a problem now. You might check with a lender that does FHA loans.

Asia
It depends on several factors1. Depending on the value of your home depends on whether or not there is enough equity to go stated2.If you have to go full doc and are self employed then your income will look considerable lower on paper3. If you originally did a no doc loan the lender most likely inflated your income so you could qualify.Are you refinancing to get a lower payment? Get out of an ARM? Your FICO also plays a part in your approval as well.If you can provide more detail maybe I can help.

Bertie
Things are very tight with lenders right now and things are very regional. While no doc loans are out there, it's on a regional basis and a basis I do not agree with. How any bank can lend without docs is beyond me. Basically, what the lender did was see your application, your credit and your appraisal and approve you. They just took your word on your application about your income. In your question, you forgot one very large piece of information, what is the appraised value of the home. If your in a region that has seen depreciating values, then the bank will decline you. What was your credit like? I wouldn't be too discouraged about this as many people are feeling the same pain. I would get a full appraisal of the property completed, see what the home is worth, and in this market, it's a good thing to know. I would try other banks, see if you have any connections to a credit union and possibly a mortgage broker. If you have the equity in the home, FHA may work for you. good luck

Jona
What happened was that they did it NO DOCS, so they didn't have to prove to the BANK how much money do you make and the bank agreed with that and they aproved you the loan, but things are getting bad on the mortgage industry and banks no longer take the risk of doing it that way (NO DOCS) AND by the way the only thing you can do is wait until your house appraise a little bit more and you have enough equity and can do it with over 20% equity on the house.