Have any of you done a home re-fi lately?

[cobra de capell]

Originally Posted by Scott S

Hoping to get a lower rate and after two and a half months of waiting we were denied for the first time ever.

We have great credit, substantial reserves, a new appraisal with over 25% equity and we were turned down because our 5 acres and home is on farmland.

We have used the same broker for over 10 years who specializes in middle to upper markets. She tells us that we are not unusual, the loan underwriters are turning down 9 out of 10 applications for the most trivial of reasons. She believes the home credit market may be this tight for a very long time..

If the best qualified buyers can't get loans, if will take years to get out of this mess.

Scott S

What reason was given as to why you were denied?

RE lenders are being very conservative now, as they were prior to around 2002, but money is available when credit/equity/ability to pay is apparent.

[Scott S]

Originally Posted by cobra de capell

What reason was given as to why you were denied?

RE lenders are being very conservative now, as they were prior to around 2002, but money is available when credit/equity/ability to pay is apparent.

My home is on 5 acres surrounded by farmland, here in Oregon we have some very whacky land use rules that screw up a lot of real estate deals.

Scott S

[cobra de capell]

Originally Posted by Scott S

My home is on 5 acres surrounded by farmland, here in Oregon we have some very whacky land use rules that screw up a lot of real estate deals.

Scott S

Same as in CA - but, once farmland is re-zoned for housing - for example, one house and a small second house per 5-6 acres there is no problems in CA getting a loan. If your land is still zoned for ag use even though you have a house on it - that may be the issue.

Perhaps your current lender will lower the rate to market? I doesn't hurt to ask.