Jump to content

wj2005

Refinance after 2 years post BK with VA mortgage

Recommended Posts

My parents filed BK and are now just over 2 years post. 

 

They need to refinance there mortgage to be able to take extra $$ to do something fixing up of things plus pay back property taxes. 

 

My question is is they would be able to get a Va loan because of my dad being in the service but what would be the best route to find out about one? Mortgage broker, traditional bank that does VA loans or?

 

I have heard that VA backed loans are a little more forgiving then other but is this wrong?

Share this post


Link to post
Share on other sites

Posted (edited)
11 hours ago, wj2005 said:

My parents filed BK and are now just over 2 years post. 

 

They need to refinance there mortgage to be able to take extra $$ to do something fixing up of things plus pay back property taxes. 

 

My question is is they would be able to get a Va loan because of my dad being in the service but what would be the best route to find out about one? Mortgage broker, traditional bank that does VA loans or?

 

I have heard that VA backed loans are a little more forgiving then other but is this wrong?

Cash-out refi just shifts debt around and will almost certainly cost them a fortune in extra  interest over the term of the mortgage.

 

How old are they, and what how long of a term (30 years)?

 

 

Edited by cv91915

Share this post


Link to post
Share on other sites
On 7/4/2019 at 6:26 AM, cv91915 said:

Cash-out refi just shifts debt around and will almost certainly cost them a fortune in extra  interest over the term of the mortgage.

 

How old are they, and what how long of a term (30 years)?

 

 

They have close to 3 times equity in the house to what they owe currently on one mortgage. 

 

And yes probably 30 year. They are older in there 70’s

Share this post


Link to post
Share on other sites
4 hours ago, wj2005 said:

They have close to 3 times equity in the house to what they owe currently on one mortgage. 

 

And yes probably 30 year. They are older in there 70’s

Their age is a compensating factor, but with a fresh 30-year mortgage, their debts will likely outlive them (unless they have an income stream or assets you haven't mentioned).

 

Zillow Mortgage Rates https://www.zillow.com/mortgage-rates/#/location is a decent place to start to get refinance quotes.  There is a question about veteran status when you provide the requested info, and answering in the affirmative should present you with VA options.  

 

Depending on the new mortgage amount, if they only have SS/retirement income they may have difficulty with DTI guidelines.  

 

Similarly situated, I would also consider selling the house, taking the equity and paying off the back taxes, and renting.

Share this post


Link to post
Share on other sites

A home equity loan or HELOC is another option.  Upfront fees should be at/nearly $0 but the rate will be higher.  

 

Which makes more sense depends on how long it will take them to pay off the additional amount borrowed.

Share this post


Link to post
Share on other sites

If your parents can't afford property taxes and maintenance, then they may not be able to stay in the house.

 

Have they talked to a financial advisor? 

 

Do you have power of attorney over their finances?

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Today's Birthdays

    1. alplouis
      alplouis
      Age: 39
  • Member Statistics

    • Total Members
      176,903
    • Most Online
      1,528

    Newest Member
    Kevin9466
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines