About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

It used to be that qualifies borrowers could refinance into an FHA loan and get cash out up to 95% of the appraised value of the home. Those days are soon to be gone. HUD just announced that beginning April 1 cash out refinances through the FHA have an 85% loan to value maximum.

FHA had already been moving in this direction. Recently they started requiring a second appraisal for cash out refinances between 85% and 95% of the appraised value of the home. The latest change is almost certainly a way to protect the FHA funds from drying up in this environment where home values across the US are predicted to drop another 20-30% in 2009.

Comments (0) Posted by G.R.A. Admin on Saturday, March 14th, 2009

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