FHA cash out refinances have undergone a couple of recent modifications.  Here are a couple things that you should know about the changes.

1. Your existing loan must be current and not delinquent.
2. You cannot add non-owner occupants to help you qualify for a cash out refinance.
3. You must have lived in your primary residence for 12 months to get the max cash out of 85% LTV (loan to value).
4. If you have lived in your primary residence for less than 12 months, your new loan amount will be capped at 85% of the sales price or appraised value (whichever is less).
5. You will need a 2nd appraisal for all cash out refinances above $417,000.00.
6. If you plan on adding a new simultaneous 2nd mortgage, you will be capped at a max of 85% CLTV (Combined loan to value).
7. If you have an existing 2nd mortgage and are planning on re-subordinating it, you can re-subordinate it with no max CLTV.
8. If you currently have a 2nd mortgage and you modify it to accomodate your new 1st mortgage, you will not have a CLTV restriction.

These changes are temporary and in effect as of April 1st 2009.  Please email me if you have any questions, Tino.Muratore@gmail.com. 

Thank you,

Tino