To: All Staff
From: Production Support and UW Mgmt
FHA has just issued new guidance for cash out refinances that will affect ALL loans with FHA case numbers assigned on or after September 1, 2019.
The maximum LTV for a cash out refinance will be limited to 80% Loan to Value. This is a change from current FHA guidance which allows for 85% LTV on a cash out refinance.
If you are working on any refinances where this could impact the loan scenario you’ve disclosed to your borrower make sure you have a FHA case number assigned as soon as possible.
If you aren’t sure how to pull a FHA case number, please reach out to Production Support for assistance.