REFI question and money down

[brokeNconfused]

Ok.. i keep seeing here that 20% is required as a down payment for a refi with FHA is this correct? How does one come up with that kind of money? I will need to refi during my 13 plan in about 18 months from now. i dont have much equity but my county assesment just increased our property tax value about 10k more than i actually owe. I hear that property tax(includes home) is about 20% less than an apprasial would be. Is this right. Did i just walk into 20% equity ?

numbers are not my thing, hard to understand the finance thing here. any help or knowledge would be wonderful.

i should mention, I purchased my home 2 years ago and it appraised at the same amount the county just assesed it at. My assesment value with the county acaully increased almost 50k total. does this make sense?

[Flamingo]

You don't need to put 20% down on a house you already own and are refinancing. That is for purchasing a house. What you need is 20% available equity in your house. If you don't have that, you will be subject to PMI. We refinanced also while in Chapter 13 to buy out early and went through all that. Being in BK, you will be subject to PMI anyway due to the higher risk involved and you will probably have to pay a certain percentage at settlement and five years of PMI in your payments. Since you need to file 1 1/2 years from now, your house could rise in value by that time since the market is due to change prior to 2010 so hopefully you will have more equity by that time. You will need to determine also if you don't have a lot of equity right now if you will be able to refinance at that time due to costs involved, amount of equity available, etc., etc. Do your homework, get a good broker (your attorney is a good start as to a broker reference while you are in BK) and watch the housing market as to your home value.

[imaloser]

broke -

read this link - it is current from the hud website - updated 09-05-08 and this goes into effect on 01-01-09.

fha will be a very good deal for you. i wouldn't wait if i were you. the process could take some time - especially now with fannie and freddie loans which i'm thinking will be converted to fha loans.

you will need a manual underwriter.

all you need is 97% equity. however, you could still go to the closing table with money to keep your payment lower.

but your trustee payment might change. i'm also hearing in legal circles, because of all the refi's, that they may not change your trustee payment because of this ongoing housing crisis.

http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2008_MORTGAGEE_LETTERS/08-23%20REVISED%20DOWNPAYMENT%20AND%20MAXIMUM%20MORTGAGE%20REQUIREMENTS_3.DOC

[brokeNconfused]

well i have no equity now, but since the county raised the tax assesment i will have 10k on a 195k home. thats not enough though is it? I have been told the acual value is 20% above a county assesed taxed value. If this is right then i will have equity. My loan i though a credit uniion, but i think they got the $$$ from Fanny may. I just wish a magic elf would bring me papers that say .. Hey.. sorry we put you in an Arm loan. Today we are going to lock your interest at the original rate. please dont default no becase the banks cant afford it. .... I would eat a car if that would happen.