It seems as though every day the number of viable refinance programs for Las Vegas homeowners decreases.  So it is up to us as Loan Officers, to help home owners reconnect with great refinance programs that were not considered before BUT have always been around. 

A prime example of this is the 95% FHA Cash Out Refinance.  You may be asking, 95% Cash Out in Las Vegas?  Yes, in Las Vegas! 

For those of you that don't know, Las Vegas has been classified as a "Soft Market".  In not so many words, Mortgage Banks are more conservative with their guidelines in "Soft Markets".  Meaning if the maximum guidelines for a loan program are 100% Loan-to-Value (Amount of the Mortgage Loan versus the Value of the Home in Terms of a Percentage), in a "Soft Market" they would be reduced by 5% for a Maximum of 95%.

FHA Loans are not affected by the soft market policy.  So FHA will allow a Cash Out Refinance up to 95% of the homes value even in Las Vegas.  With interest rates being so low these days, FHA Loans offer a tremendous savings in your monthly mortgage payment. The key items that determine eligibility for an FHA Cash Out Refinance are as follows: 

FHA will allow a cash-out refinance of up to 95% of the appraiser's estimate of value subject to meeting all of the following eligibility conditions:

• You must be able to qualify for an FHA Mortgage 
• The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.
• No 30 day late payments in the last twelve months
• 1- or 2-unit homes only
• Existing Second Mortgages may remain in place, but subordinate to the FHA first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.
• Any co-borrower or cosigner being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.

As I said before this loan has been around for quite a while but has not been used.  This FHA Refinance Loan could help many Las Vegas homeowners.  Should you have any questions about this or any other refinance, please feel free to contact me directly.

Your Mortgage Partner for Life,

Rey Gallegos
Home Loan Consultant