According to a letter that went out to lenders this week, The Federal Housing Administration (FHA) plans to make it tougher for borrowers to secure a cash-out refinance mortgage.
Until now, the FHA has approved cash-out refinances for homeowners who have at least 5% equity in their properties and a record of on-time payments for at least one year.
However, beginning April 1, this type of refinancing will be restricted to borrowers with at least 15% equity in their homes.
This is a "temporary change" said current FHA Commissioner Brian D. Montgomery, while the FHA determines whether "permanent measures" should be taken.
In other words, give us a call today. We only have until the end of the month to make an application before the new rules are implemented. Who knows what new restrictions the FHA will have in place in the future.
1-800-706-6671 ext 4349