As of April 1st, 2009 the FHA cash out refinance limit will be lowered from 95% to 85% loan to value. 

The truth is that we don't have 2.5 weeks left to lock in to the 95% cash out rules because every lender can individually decide to impose the changes at any time!

As of today March 16, 2009, I have not been notified by any lenders about these changes.  That could change very quickly so if you were not sure what you wanted to do it may be wise to sit down and really decide what you need.  Some lenders have already capped the FHA cash out refinance at 85% a few weeks ago but most would still accept 95% as the limit. 

I personally have quite a few FHA 95% cash out refinances in the works so I understand how valuable the program is.  I am not surprised by the change and hopefully the 85% rule stays in place or reverts to 95% soon. 

Also, with the FHA loan limits returning to the 2008 limits most lenders are now accepting streamline refinancing with these new jumbo limits.  For some reason it took a few weeks to catch on, but then again, it's a great bonus for all those people who were in limbo since closing in 2008! 

Please feel free to contact me at anytime with questions at mark@visionmortgagema.com and have a great St. Patrick's Day!!