It’s no April fools Joke. FHA discontinues Cashout soon so APPLY NOW

FHA to stop cash-out loans as of April 1st 2009.  Cash-out can mean any money that was not part of the original purchase of the home.  Effective for case number assignments on or after April 1, 2009, the loan-to-value (LTV) of any cash-out refinance to be insured by FHA may not exceed 85 percent of the appraiser’s estimate of value. 

 

Given the continued deterioration in the housing market, and FHA’s need to limit its exposure to undue risk, this reduction to the maximum LTV for cash-out refinances is being instituted on a temporary basis while FHA further analyzes the housing and mortgage industry as well as its own portfolio to determine whether permanent measures should be taken. 

Brent Diebert
Mortgage Lending Professional
BrentDiebert@arlingtonbank.com 
The Arlington Bank
4621 Reed Rd
Columbus, OH 43220
Office: 614-486-3843
Cell:     614-571-3554

 

 

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