Quote:
Originally Posted by asshanson
I actually called US Bank about refi, and they do approve them up to 125% loan to value which I barely qualify for. So everything was approved for me at < 4.5% until they realized my mortgage was FHA instead of a conventional loan. Sucky.
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I don't understand why it would make a difference if it was FHA. FHA standards are more strict than conventional loan standards and all they would be doing is paying your loan off and creating a new loan. It would be no different than if you refinanced a car loan at a different bank (aside from additional paperwork).
Their explanation doesn't make sense to me. I am guessing it is something else and they just said that as a reason. I guess it is possible if they were trying to qualify you under the HARP program, but if they are holding the loan, they can make what ever changes they want.