Posted by yourmortgageplanner in
FHA on 03 27th, 2009 |
4 responses
If you’re in need of a cash out refinance, the most liberal cash-out program in town is about to make qualification more difficult.
Effective April 1, 2009, the FHA is reducing the maximum loan-to-value on cash-out refinances by 10 percent, dropping the loan size limit from 95% of the home’s value to 85%.
In its official press release, the FHA says it’s making the change to “limit its exposure to undue risk”.
It also lists the following cash-out requirements:
- With less than 12 months since the purchase date, a home’s value cannot exceed its original purchase price — even if home improvements were made.
- A homeowner must be current on his mortgage payments to qualify
- A second, verifying appraisal may be necessary, depending on loan traits
- Co-signers may not be added to the mortgage note in order to qualify
The last day to register a FHA 95% cash out refinance is Tuesday, March 31, 2009. The loan does not need to be “locked” — only registered.
So, if you know that a 95% cash out FHA refinance is in your future, you maybe out of luck?
[where: 98109] [where: 85012]
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March 27th, 2009 at 3:18 pm
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March 27th, 2009 at 3:32 pm
[...] the original post: FHA Is Reducing The Maximum Loan-To-Value On Cash-Out Refinances … This entry was written by admin, posted on March 27, 2009 at 1:30 pm, filed under Object and [...]
March 27th, 2009 at 5:12 pm
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May 1st, 2009 at 5:26 pm
Love your post!! Finally someone got it right!!! Would you mind if I put a blogroll link back to your post?