HUD Cash-Out Refinance Guidelines

HUD Cash-Out Refinance Guidelines For FHA Loans

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On HUD Cash-Out Refinance Guidelines For FHA Loans Was PUBLISHED On January 9th, 2019

The economy is on fire after Donald J. Trump took office.

  • Unemployment numbers are in the 3.0% mark
  • This has been a historical low in unemployment numbers in U.S. History
  • Most homeowners with underwater mortgages are no longer upside down
  • They have equity in their homes
  • Homeowners are enjoying a nice ride with rising home prices
  • The FHFA has raised conforming loan limits for three years in a row due to escalating home prices
  • HUD followed FHFA and raised FHA Loan Limits for three years in a row
  • Despite the highest mortgage interest rates since the 2008 Housing Bubble and Credit Collapse, there are no signs of a housing correction
  • Housing demand remains strong in all parts of the United States
  • There are no signs of any slowdown
  • Home Builders are enjoying record sales year after year
  • With home values the highest it has been, homeowners can benefit from FHA Cash-Out Refinance

HUD Cash-Out Refinance Guidelines allow homeowners to do an 85% LTV Cash-Out Refinance Mortgage. 

HUD Cash-Out Refinance Guidelines And Its Benefits

Homeowners with equity in their homes can qualify for FHA Cash-Out Refinancing. Many homeowners do not realize the extent of how much their homes appreciated the past few years. Under HUD Cash-Out Refinance Guidelines, homeowners can qualify for 85% LTV Cash-Out Refinance FHA Loans. The new FHA Loan will pay the outstanding loan balance and the leftover proceeds go to the borrower. Borrowers can use the excess proceeds for any purpose.

Proceeds From Cash-Out Refinance Is Non-Taxable And Can Be Used For Any Purposes

They can use it for the following:

  • Pay off existing high-interest credit card debt
  • Pay off their high monthly payment car loans
  • Home improvement
  • College education for their kids and/or grandchildren
  • Vacation
  • Purchase a second home and/or investment property
  • Pay off a second mortgage
  • Any other purpose
  • Most credit cards have an average APR of 18%
  • Americans have revolving credit balances of $1.04 trillion which are making credit card companies mega-rich
  • The American Bankers Association claims that 44% of credit card account is not paid by consumers every month

Homeowners with equity in their homes should explore doing a cash-out refinance and paying existing high-interest debts. Mortgage interest is tax-deductible where credit card interest is not.

Lowering Monthly Payments

Paying higher interest debts like credit card and/or auto loan debt can greatly reduce overall monthly payments by consumers:

  • Just going over the numbers with a loan officer on consolidating debts with a cash-out refinance often amazes borrowers
  • With the combination of lower monthly payments and the benefits of mortgage interest deduction, homeowners can save tens of thousands of dollars over the term of their home loan
  • Every situation is different and unique and savings will vary because there are many variable factors

HUD Cash-Out Mortgage Guidelines For Homeowners

The first step is to find out how much your home is worth:

  • Can cash out up to 85% LTV of the appraised value of your property
  • New FHA loan would be 85% LTV of the appraised value plus FHA upfront mortgage insurance premium (MIP)
  • HUD requires that cash-out refinances is for owner-occupant borrowers only
  • One to four-unit properties qualify
  • Need to meet all HUD Mortgage Guidelines

Qualify For FHA Cash-Out Refinance With National Lender With No Overlays

Borrowers who have an interest in qualifying for FHA Cash-Out Refinance with a direct lender with no overlays on FHA Loans can contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

This BLOG On HUD Cash-Out Refinance Guidelines Was PUBLISHED On January 8th, 2019