Brooklyn, NY · Member since 2016 · 115 posts · 40 votes
I have a FHA loan on my 4 family investment. Due to the pandemic I took a forbearance on my loan because all my tenants and myself and wife lost our jobs. I recently found work in late July and two of my tenants moved out due to not having work. The other two were on unemployment but have had issues and my wife is still unemployed and pregnant.
I took the option of a loan modification after not paying mortgage for 5mos. Prior to this I wanted to refinance my loan to lower my rate and essentially my mortgage. Now that I’ve taken this modification how will it affect me being able to refinance my mortgage in the very near future.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
5y
Depends on your credit and if they report it. Many large GSE's to my understanding aren't going to ding people if they do a forbearance and transition straight to a loan modification due to covid. If your credit isn't dinged, it may not affect you negatively at all and you should be able to refinance as soon as possible if you are eligible.
If the lender becomes aware of the forbearance plan, or the loan modification because it was recorded ( i'm assuming you have a recorded partial claim due because of the FHA loan ) , or if your credit was dinged than that would be another story and could prevent you from getting financing for a period of time.
There is no straight answer without having your situation reviewed.