Need Help To Refinance Non-conventional Horse Property,
I have a horse facility in Worley, Idaho. I have 10 acres. The non-conventional part is that the house portion is on top of the barn, and then there is an indoor arena attached to the barn. I have had a hard time finding appraisers to do it as it is hard to find comparables.
I currently owe $ 166 000 on the mortgage and the monthly payment is $ 1570.
Interest rate is 7.375%. 30 yr fixed. The payment includes taxes, insurance etc.
I just got a divorce and in the process my credit has been damaged. It is about 580-600 right now and I am still cleaning it up where I can. There have been no late payments on the mortgage for at least a year- since I took over the payment from my x-husband and the house was awarded to me by the court (or rather mutual agreement between my husband and me). There will be late payments showing on my report before last summer..due to this.
I am looking to lower the payment and if i can the interest rate- as well as get some cash out. I do not have a recent appraisal. I have not been financially able to do so on my own since I took it over. It was appraised at about 185 000 in 2001. I know the property prices have gone up in the area due to major construction of roads, golf courses, big houses at the lake etc. I have the name and number of the appraiser who originally did it.
Thank you for your time.
With yoru credit scores, you'll have difficulty dictating terms to any mortg co's; but you might be able to 'explain' all of this to a local bank. After all, they know the value of the underlying land in your area, and might be more willing to trust you with the security of the land, than a typical mortgage company would.
If you can get through 2 years without any mortg lates, and keep everything else on track, your scores will be greatly improved and your ability to get more traditional financing will be much easier.
Unless the last 2 years have been especially great appreciation in your area, you don;t have enough equity to do much - I'd suggest you keep your 7.375% loan fro another year, and make sure you take the next year to clean up your CBR.
Ms. Helene,
Give me a call..With your scores, you should be able to get at least a 90% LTV and do a cash-out refi. If you can get in contact with the same appraiser who did it before, it should make things a lot easier. Your credit falls in the category of subprime, but most bank only deal with 'A' paper, or prime loans. Also, most lenders only need to see a 12-month history of mortgagr payments. If you still need help, give me a call at (901)831-5308 or shoot me a private message.
~Kesha