FHA loans - Mortgages keep changing because of the economy. Just a few days ago, HUD put out mortgagee letter 2009-08, that states a major change in cash-out loans. This change has been talked about since November of last year and it's now official. The main reason is because of the deterioration of the housing market and HUD wants to reduce its risk and that makes sense. What is the new change? You will no longer be able to pull cash-out up to 95% of the value of your home. It is now reduced back to 85% of … (12 comments)
For several of you that read my blogs, I try and do a FHA vs Conventional purchase comparison once every 3 months. I actually wrote this blog yesterday, FHA loans - cash-out - A comparison with conventional loans. I wanted to tell everyone of a new update on FHA cash-out loans and to give my honest feedback, telling everyone that for the most part, FHA is even better than conventional when it comes to cash-out mortgages. One main reason is that with conventional cash-outs, you have some major pricing hits, depending on your credit scores. In any case, … (25 comments)
FHA loans usually offer the best cash-out options depending on how much you want to borrow from your home. Besides, with the ever changing guidelines to conventional loans, in many cases, it's a no brainer.
FHA loans update for cash-out mortgages - As of December 15th, in mortgagee letter 2008-40, you are now required to have 2 appraisals if the LTV is over 85%. It use to be that you only needed 2 appraisals if you met all 3 of these things : If the loan amount was over $417,000.00 If you loan amount equaled or exceed 95% … (10 comments)
I earlier wrote a post about your basic cash-out types of mortgages, both for FHA loans and for Conventional loans : Cash Out Mortgages - FHA loans vs Conventional loans - Part 1 This post showed that your best out cash-out scenarios would typically be best with FHA loans and that you could even go an additional 5% higher for cash-out. Now I want to move onto a more difficult topic and that would be Jumbo cash-out mortgages. What is a jumbo mortgage? Any loan amount from $417,001 to $729,750. Now, here is the … (13 comments)
conventional cash out loans: Cash Out Mortgages - FHA loans vs Conventional loans - Part 1
- 06/25/08 04:16 PM
FHA Loans & FHA Mortgages : FHA has a "cash-out" and a "no cash-out" refinance. There are few major advantages when applying for a FHA cash-out refinance than possibly doing a conventional cash-out refinance. All scenarios are for primary residences only. On a side note, you can do a FHA refinance, no cash-out up to 97.75% of the value of your house. And you can include your closing costs also. On a conventional refinance, you can only go up to 90% of the value of your home.
FHA 95% cash-out guidelines : The property secured can only … (13 comments)
I just want to educate people about mortgages and the process.
In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.
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