FHA Cash Out

The maximum loan amount is 85 percent of the appraised value which will include the Up Front Mortgage Insurance Premium. This is limited to the county limit in your area, so be sure to ask our specialists YOUR maximum loan amount.

An FHA cash-out refinance loan is an FHA-guaranteed loan that allows refinances of any type of lien against the secured property, along with any other consumer debt.

The FHA Cash Out loan is ONLY for Owner Occupied Properties. You can cosign on an FHA cash-out refinance only if you live in the home you are refinancing. Non-occupants cannot be used to meet FHA credit guidelines. FHA loans are designed to help medium- to low-income citizens, not as a tool for investors.

Length of ownership of the home. If you’ve lived in the home less than a year, the FHA lender will use the lower of the appraised value or the original purchase price of the home to determine your maximum loan amount. For example, if you purchased the home less than a year ago for $250,000 and it now appraises for $270,000, your maximum loan amount will be $212,500 (85% of $250,000).

We can go as low as 500 on a FICO score for cash out on the FHA.

Maximum back end Debt to Income ratio is 43%. However, we can go higher with Approve/Eligible in Desktop Originator, or with compensating factors. Ask your loan specialist for clarification.

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