For fun an giggles, let's say you bought a property in Feb. of 2008. You got a Heck of a Deal - and you purchased the home for $237,000. The appraisal in February was for $245,000 (and the appraiser thinks it's worth more now). The loan in February was a conventional 100% Community Reinvestment loan (those are no longer available). Your credit is good, you qualify, and since your rate is currently 6.875% - you'd like to refinance.
BAD NEWS! If you are in North Carolina, and you want to refinance you must wait until February of 2009, because there are no programs available. The best option for this type of borrower is an FHA loan.
Buried in the new FHA guidelines, 702.2... it says:
Property Acquired Less Than One Year. If the property was acquired less than one year before the loan application and is not already FHA-insured, in addition to the calculations described above, the original sales price of the property also must be considered in determining the maximum mortgage. With conclusive documentation, expenditures for repairs and rehabilitatoin incurred after the purchase of the property may be added to the original sales price in calculating the mortgage amount. (this use to be six months)
Just one more little thing that the Government is doing to help you out! If you are considering a refinance in NC or Virginia, or you need a mortgage loan for a purchase in Cary or Raleigh, please call us!