This is to let you know that according to Mortgagee Letter 2009-08 that effective April 1, 2009 you will be limited to a maximum of 85% cash out. So if you are looking to get the 95% cash out limit you will need to get your FHA case # prior to April 1, 2009. So you will only have a few days left if you are needing to go the 95% limit.
Here are the new guidelines summarized for the 85% FHA Cash Out Limits :
- Combined Loan To Value = max 85%
- Must have owned the property at least 12 months to get the 85% of the appraisers estimate
- You cannot be behind in your mortgage
- 2 appraisals will be needed for loans over $417,000
- You cannot have a non-occupying co-borrower to qualify for the new cash out limits
- Must be done by a FHA approved lender or correspondant
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