FHA Cash Out Refi

FHA loans allow cash out mortgage refinances of owner occupied properties only. The maximum cash out refinance mortgage loan cannot exceed 95% of the loan to value. The new FHA loan must not exceed the maximum FHA loan limit for county of the subject property.

A cash out refinance mortgage is when a borrower receives more than $2,000 back after closing or if the proceeds from the new FHA loan will be paying off a 2nd mortgage or HELOC that is less than 12 months old.

The new FHA loan must be the primary lien holder on the subject property. You’re not required to have an existing FHA loan on the property to take advantage of this program. This programs allows you to take out up to 95% of the appraised value versus conventional loans which only allow up to 90%. FHA mortgage rates are much lower than subprime mortgages, and the PMI can be significantly lower.

HUD allows FHA Bankruptcy buyouts, and is subject to Trustee approval. A 12 month history with no late payments is required for underwriting approval on all Bankruptcy buyouts.