As 100’s of Ann Arbor and Metro Detroit area homeowners flock to their favorite mortgage professional in hopes of refinancing their current loan, more than half won’t qualify. Even with a solid credit history and employment, these folks are being turned down. Why? Their home won’t appraise for the new loan; No lender worth their “wing tips” will loan money on the property unless it meets their underwriting criteria. ....mainly appraising at a certain dollar amount.
Nationwide and especially here in the metro Detroit and Washtenaw County areas home values, like our 401-k’s, have been plummeting. Many of these folks have zero equity or are “upside down” (owing more on their home than its worth) so, these unfortunate people really have few, if any options, for taking advantage of these historically low interest rates we’re seeing.
There is a way though, where an appraisal is not required. If your current mortgage is an FHA/VA backed loan you can refinance the mortgage on your home and not worry about a home appraisal - period! Yup, that’s right. No Appraisal is needed-Thanks to the “FHA Streamline" program, but there are a couple of catches. “Darn” you say! “Those dastardly catches!” Come on, there are always catches, but they’re not too bad :)
To Qualify:
- You must have a FHA or VA Loan now.
- You have to have a job.
- Your credit score must be at least 580.
To find a lender that handles FHA/VA Loans or if you have any real estate related questions or concerns, please feel free to contact The Wickland Group, an experienced team of Ann Arbor realtors at http://www.wicklandgroup.com/.
by Steve Wickland
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