Tag: Cash-Out Refinance

Refinance for the Purpose of Paying Off a Second Lien

Question: My client has a home improvement loan as a second lien, and he would like to refinance to combine them. Can this be done as a rate/term refinance? Refinance Loans – All Agencies Chart Answer: Fannie Mae and Freddie Mac agree on this subject. Anytime you are paying off subordinate financing for agency loans, […]

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VA Seasoning Requirements for a Cash Out Refinance

Question: Our client purchased a primary residence this Spring using private financing.  We would like to do a VA cash-out refinance to pay off the private financing but are being told that Ginnie Mae will not allow the refinance until a seasoning requirement has been met even though VA allows the refinance without a seasoning […]

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New Construction Cash-Out Refinance Rules

Question: My client paid cash for a parcel of land that he is now building a home on using construction financing from his bank. He wants to pay off the construction loan and lower his rate to a longer-term mortgage loan. Is this considered a cash-out or a rate/term refinance? Answer: This is a conversion […]

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Refinancing to Combine First & Second Lien

Question: My client purchased a home and then took out a second lien to make some home improvements. They would now like to refinance to combine the first and second lien. Is this a Rate/Term refinance or a Cash-Out Refinance? MC – Refinance Loans – All Agencies Chart Answer: Fannie Mae and Freddie Mac agree […]

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FHA Mortgagee Letter 2019-11, Maximum Loan-To-Value and Combined Loan-To-Value Percentages for Cash-out Refinance Mortgages – Dated August 1, 2019

Written by: Tracey Rumsey, Staff Writer Big changes for FHA originators as FHA evaluates the programs that are causing their insurance fund the most problems. If you originate FHA loans, this is a must read. Rule Synopsis: Effective for case numbers assigned on or after September 1, 2019. All policy updates will be incorporated into […]

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