New FHA Cash Out Refinance Guidelines | FHA Debt Consolidation

New FHA Cash Out Refinance Guidelines FHA Debt Consolidation

New FHA Cash Out Refinance Guidelines | FHA Debt Consolidation

Are you looking for the new FHA cash out refinance guidelines? Cashing out on your home allows you to pull equity out of the property where no mortgage currently exists. Whether you want to pay off debt, cash out, or do a combination of the both, an FHA cash out refinance can be a solution to your needs. Often, people cash out on their home when they are overwhelmed with high monthly debt payments, looking to do home improvements, or have other plans.

FHA Debt Consolidation

When you have equity in your home, you can use the FHA debt consolidation refinance to pay off credit cards, cars, student loans, home improvements, consolidate a second mortgage with a higher interest rate, or pay off other debts.

Cashing out or consolidating debt may be a solution for borrowers overwhelmed with high monthly payments.

Save Money By Cashing Out

Often, borrowers are amazed at how much they can save when going through with an FHA cash out refinance or FHA debt consolidation refinance. Your situation is unique and results vary, but you can go over your case scenario with a Loan Originator to eliminate high monthly payments. In some cases, borrowers can eliminate all of their other debt obligations.

New FHA Cash Out Refinance Guidelines

Mortgagee Letter 2019-11, effective for case # assigned on or after September 1st, 2019 made a change to maximum loan-to-values when cashing out with an FHA loan:

Other guidelines:

Some mortgage companies have stricter FHA cash out refinance guidelines called an overlay, which is an internal guideline on top of FHA guidelines. Some examples include, but not limited to a specific credit score, maximum debt-to-income ratios, manual underwriting, and other internal guidelines.

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