Many people have difficulties getting new mortgages and refinances nowadays. Before the financial crisis, people could qualify for any amount of mortgages and refinances as long as they could breath. Now things have changed. Just the past two years after the housing bust, even with federal government bailout, hundreds of banks disappeared in different states. They were either bought or took over by the larger banks or federal government. The larger banks could survive because the federal government bail them out more and gave them more support because they were too big to fail. The larger banks survive, but they could have collapsed if not for the federal government's help.
After the banks got burned so severely, now they are hoarding the cash. The rules of lending money is a lot stricter than before the financial crisis. Before the crisis, the bank would lend you money without income verifications (yes, you could fill in any dollar amount of your income, the bank would not bother to verify it), no down payment, credit score with 540, inflate home prices appraisal, easy money. After the crisis, they become very strict. They verify everything, the credit score minimum is 640, 20% minimum down payment, home prices appraisals are low. With all these restrictions, the banks, now, are only lending to 30% of all applications. That is why so hard a get a mortgage or refinance now.
you may want to try FHA's Energy Efficient Mortgage (EEM). The program helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing. Make sure you get a FHA's approved lender. For more information about EEM program, go to
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm Good luck!
