Call Tyler at 515-257-6729 
Your Best Option Is About To Leave The Building
If you’re in want 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%.
The Reasoning Behind The Decision
In its official press release, the FHA days 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
How You Can Avoid The Changes
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, talk to your loan officer before Wednesday morning about registration.
Tyler Osby is an active loan officer. You can ask him questions by emailing him at tyler@tylerosbyteam.com or calling 515-257-6729. Tyler is also on Twitter talking about the mortgage market at @TylerOsby.
