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Can I Refinance with a First Mortgage and a Second Mortgage
I have a few questions where I am getting conflicting answers. Let’s say a homebuyer bought a house for $400,000 with an FHA loan with a down payment assistance program where the Lender awarded the buyer a 3,5% non-forgiveable 3.5% second mortgage at 0% interest rate. However the down payment awarded needs to be paid back when the homeowners either sells the house or refinance their home. Can you please go over the specific case scenarios. What if the homeowners do not have enough equity w payment to do a cash out refinance to satisfy the DPA. Can the owners do an FHA STREAMLINE REFINANCE and will the DPA be subordinated and allowed without paying it back? What happens if the home take a major market value depreciation and the owners are forced to sell it because they can no longer afford it. They can pay off the first mortgage but not the second.
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