Bank of America didn't approve us for refi!!!!

14 Replies

Evening professionals

Need some answers! I purchaced a primary residence on 2004 at the high of bubble for 385,000 in RI. We put down 80,000 down payment and financed 305,000. 

2 yrs later we got a 2nd mortgage out around 20,000 for other bill and stuff.

Few yrs later we refinaced to a lower rate of 4.75 %. ONLY on the first cause we're at the bottom of the market now.

Now were back trying to refi again and was locked in at 3.75 which includes the 1st and 2nd mort. We have to go the VA route due to 95% LTV.

Currently we owe 285,000 and with around 10,000 in VA fees and other stuff. Total of 295,000

Since I've been married only my W2s showed over 100,000 per year my mortgage and refi has been off my pay only.

Well BAC ordered the inspection and went over the paperwork which shows my FT job over 10 year and my 2 part time jobs less than 2 years.

Now because my wife has only worked PT less than 2 years and no steady employment before that besides being a FT mom.

WE HAVE BEEN DENIED BASED ON HER WORK HISTORY! With both of our scores over 760.

This refi would of helped bring down my mort 2400 to 2000 a month.

ARE THEY DISCRIMINATING IN ANY WAY BESIDES race,relegion,color, etc.

@Sean Cavanaugh

First of all don't be so quick to pull out the race card because you didn't qualify for refi that would have saved you $2400-$2000 a month.

Based on the limited info you disclosed you were denied, in my opinion, because you're dti's ( debt to income) ratios were too high.

Care to disclose what your dit's were when your loan was run through desktop originator so we can get a better understanding of your loan scenario?

You mentioned that you were denied because of your wife's work history, which implies you needed her income to qualify for the loan.

Because she has not worked full time for the two years required to use her income to lower your dti's, you were denied, not because of discrimination.

Your 100k income and 760 fico scores sound impressive, but don't matter if your dti's are too high.

Try contacting a mortgage broker in your area that can get you wholesale rates vs the retail rates BAC would charge and this may be enough to lower your dti's, otherwise the mortgage broker may be able to offer you a different loan program that would help you qualify.

Good luck and keep us posted.

as a lender I can tell you that Bank Of America doesnt want your business.  Loan origination is very time consuming and there isnt anywhere near the amount of money/profit in it as there had been.  they prefer to get money from fees and investments.  

Go see another lender, ideally a mortgage broker or banker.  

[email protected] | 360‑927‑0959 | http://www.patbritton.com | WA Agent # 120557

@Sean Cavanaugh  I can't speak the details of your loan qualification. But from personal experience, I've found it difficult to work with the larger "national" banks. You might find a local bank or credit union and see if they could make it work.

Mike

Medium oak tree real estate logo jpgMichael Wentzel, Oak Tree Real Estate, LLC | [email protected] | 719 338 2786 | http://www.oaktree-realestate.com

And this is why you never factor a pretender lender into your real estate dealings. Bankers are some of the most untrustworthy people walking the earth and should never be counted on.

From what I hear, bofa isn't lending much and should be avoided as many stated already. You need a VA focused bank who underwrites VA loans in house. Someone should analyze if you qualify for an IRRL (VA streamlined refinance without appraisal). Or you can do a standard VA loan. It shouldn't be difficult to consolidate some debt to help you qualify if need with a regular cash out VA refinance. You can borrow up to 100% of the value of your home in most areas depending on your loan amount and what county you're in.

Don't give up. You should be well taken care of as a veteran.

Patrick B. hit on the dot. I just completed 2 refinances, one initially with Wells Fargo which took 6 months to complete, then another with a mortgage broker completed in 4 weeks then sold to another retail bank. The typical banks could care less, the employees are lazy, red tape, I have 800 FICO score, I would never get loan through traditional bank again. Go with mortgage broker with no cost refinance.

@Sean Cavanaugh  In general, it looks as though you are still paying the price for having such large borrowings on a house that might still be on their books as valued no more than you owe (you might consider yourself lucky there, because many of those that did the same as you went bankrupt as soon as the GFC kicked in and the banks called in those loans). So, I agree with @Patrick Britton  that your bank is likely to be not interested in your business. They would much prefer to lend to those who, on paper, don't need the loan!  All the best...

@Sean Cavanaugh  In a post last month you said this property was only valued at $231K ... I'm not sure why any bank would refi you for around $300K with collateral worth significantly less than the debt. Given that you said you already refinanced this once to pay bills and you have a decent income, I'm thinking your expenses must be out of whack. Maybe look to Dave Ramsey's teachings.

It may be your wife's lack/unstable of work history/income. Try another lender

@Sean Cavanaugh They are discriminating against you based on your income, which they should be doing. On a VA loan you either fit inside the box or you don't. You need to achieve a maximum debt to income ratio for the loan to proceed. You either have that income or you don't. If income is sketchy, infrequent, inconsistent, unseasoned, or uncertain then the bank is required to exclude it when considering your ability to repay. Tax returns (2 years) are generally the best way to show the bank that you have stable income.

Once you approach the 95 to 100 LTV area you become a serious credit risk for BAC even if they sell the loan to GNMA regardless of your overall financial situation. Think about the crazy mess BAC has been involved in with illegal foreclosures, not modifying loans quick enough, not working with borrowers, DOJ prosecution, loan buybacks, the Countrywide merger, etc. They do not want to be foreclosing on you in the next couple of years for the headline risk alone and are doing everything possible to make sure you will not default on the loan. One way to protect the bank is to heavily scrutinize applicants when they want to bring very little cash to the table.

Another thing not being talked about here is the heavy reserves that are fixing to be placed on big banks.

The " Too Big Too Fail" caused the government to do bailouts. Now they see the big banks as systemic risk if they go down. The government does not want to do bailouts again.

There are about 10 big banks on their radar. They want to place additional liquidity requirements on these big banks to be safe. Anything not fitting in a nice box these large banks do not want to touch.

The problem now is even if you go to a new lender the rate is nowhere near 3.75 for the best credit. It Is around in the 3.9's currently.

You want a small bank that wants the relationship.

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

Originally posted by @James Kendrick :

@Sean Cavanaugh They are discriminating against you based on your income, which they should be doing. On a VA loan you either fit inside the box or you don't. You need to achieve a maximum debt to income ratio for the loan to proceed. You either have that income or you don't. If income is sketchy, infrequent, inconsistent, unseasoned, or uncertain then the bank is required to exclude it when considering your ability to repay. Tax returns (2 years) are generally the best way to show the bank that you have stable income.

Once you approach the 95 to 100 LTV area you become a serious credit risk for BAC even if they sell the loan to GNMA regardless of your overall financial situation. Think about the crazy mess BAC has been involved in with illegal foreclosures, not modifying loans quick enough, not working with borrowers, DOJ prosecution, loan buybacks, the Countrywide merger, etc. They do not want to be foreclosing on you in the next couple of years for the headline risk alone and are doing everything possible to make sure you will not default on the loan. One way to protect the bank is to heavily scrutinize applicants when they want to bring very little cash to the table.

Since I've had the house my W2s returns clearly exceeded 100k and Approximately eight months ago I paid off most of our debt which I thought would've helped.

My personal part time jobs of less than two years they would not takealso because of the inconsistency and less than two years employment. 

Originally posted by @Brent Coombs :

@Sean Cavanaugh In general, it looks as though you are still paying the price for having such large borrowings on a house that might still be on their books as valued no more than you owe (you might consider yourself lucky there, because many of those that did the same as you went bankrupt as soon as the GFC kicked in and the banks called in those loans). So, I agree with @Patrick Britton  that your bank is likely to be not interested in your business. They would much prefer to lend to those who, on paper, don't need the loan!  All the best...

You bet your *** I am still paying for it I should be rewarded from the government for holding on. We are the middle class and contributors of America here at bigger pockets!z. 

I would rather borrow money from the mob lol. BOA would be my last choice for HML. Try Discover Home Loans.