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FHA LIMITS CASH-OUT REFINANCES TO 85%

HUD Mortgagee Letter 2009-08
Released on March 12, 2009

Tri-City, WA homeowners wanting to refinance need to ACT NOW!

Effective for FHA 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% 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 in 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.

If you or someone you know might be effected by this dramatic change, please contact me immediately.  Act now before your ability to refinance is in jeopardy.  Call 509.735.6603 and speak to a Tri-City Loan Professional to see if this change will effect you.