FHA Cash-Out Refinance Requirements 600 credit score or higher (varies depending on lender). Must have at least 75% loan-to-value ratio (LTV ratio). Owner-occupied properties only. Single family home, 2-4 units, condo and town homes FHA eligible. No late payments in past 6 months. No more than.
FHA Cash-out Max LTV and VA Refinance Max LTV. FHA Max LTV for Cash-out Refinances. As of august 1 st, 2019, HUD issued FHA Mortgagee Letter 2019-11, which reduces the current Maximum Loan-To-Value (LTV) and Combined Maximum Loan-To-Value percentages to 80% on Cash-out Refinances; effective with all case numbers assigned on or after September 1 st, 2019.
For non-streamline, appraisal-required fha refinance loans that feature no cash back to the borrower, FHA loans rules state that the maximum mortgage for a no cash out refinance with an appraisal (credit qualifying) "is the lesser of the 97.75% Loan-To-Value (LTV) factor applied to the appraised value of the property or existing debt."
FHA Cash Out Refinance LTV FHA cash out refinances offer more flexible LTV (Loan-to-Value) compared to Conventional loans. FHA loans allow up to 85% LTV, meaning that you to cash out as much equity as you’d like up to 85% of your home’s appraised value, assuming the loan amount Is BELOW FHA county loan limits.
FHA cash-out refinance loans have a maximum loan-to-value of 80 percent of the home’s current value. The LTV ratio is calculated by dividing the loan amount requested by the property value determined in the appraisal.