FHA to Reduce the Loan-To-Value (LTV) on Cash-Out Refinance Mortgages

FHA to Reduce the Loan-To-Value (LTV) on Cash-Out Refinance Mortgages

FHA Issues Policy Guidance Reducing the Maximum Loan-To-Value and Combined Loan-To-Value Percentages on Cash-Out Refinance Mortgages

Today, the Federal Housing Administration (FHA) published a letter announcing the reduction of its current maximum loan-to-value (LTV) and combined loan-to-value (CLTV) percentages for cash-out refinance mortgages from 85 percent to 80 percent. This new cash-out refinance guidance goes into effect for new mortgages on September 1, 2019, and beyond.

The last time the FHA adjusted the maximum LTV on cash-out refinances was in 2009 from 95 percent to 85 percent in response to the weakening housing market.

What does this change in LTV mean to homeowners looking to refinance?

A homeowner wishing to refinance under the current FHA guidelines must begin the application process and have a case number assigned before September 1, 2019.

Intelliloan is prepared for this new change by the FHA and will continue taking applications under the current guidelines with case numbers assigned through August 30, 2019.

Intelliloan strongly urges homeowners looking to cash-out refinance to do so before the FHA guidelines change on September 1, 2019.

What sets Intelliloan apart is their award-winning customer service and vast knowledge of the industry. Intelliloan has been helping homeowners reach their financial goals for over 25 years.

Quick Links:

https://intelliloan.com/

https://www.hud.gov/sites/dfiles/OCHCO/documents/19-11ml.pdf

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_19_114

Metropolitan Home Mortgage, Inc. dba Intelliloan is headquartered at 4 Park Plaza, Suite 800, Irvine, CA 92614. NMLS#3290. (www.nmlsconsumeraccess.org) Not licensed in all states. Call toll free at (888) 417-8562. Metropolitan Home Mortgage, Inc. is an FHA/VA approved lender and is not acting on behalf of or at the direction of FHA/VA or the Federal government. Equal Housing Lender.