| Since you are reading this you likely already know that | | | | For cash out refinance loans, the maximum LTV is |
| gaining FHA knowledge is crucial to your success in | | | | 95% and such is permitted only if the following |
| FHA Lending. Learn as much as you can about the | | | | requirements are met: |
| FHA lending program. To do this, read as much as you | | | | - Borrowers must own and occupy property over the |
| can online, review some FHA home study training | | | | last 12 months |
| courses, and even consider taking a live Training | | | | - Borrowers cannot have any 30 days late payments |
| course. | | | | on credit report in last 12 months |
| One area that would benefit you to get your arms | | | | - Must be 1-2 units properties |
| around are the specialized rules involving maximum | | | | - All co-borrowers must be an occupant of the |
| Loan to Value (LTV) limits on FHA loans. This article | | | | property |
| gives you some insight into these max LTV rules. | | | | Maximum LTV on Cash Out Refinance FHA Loans |
| What are the maximum Loan to Value Limitations on | | | | Owned for More than One Year |
| FHA Loans? | | | | For cash out refinance loans, the maximum LTV is |
| On Purchase loans and Rate and Term Refinance, the | | | | 85% and such maximum LTV is applicable in the |
| amount of any insured mortgage cannot exceed | | | | following circumstances: |
| 97.75% of the appraised property value excluding | | | | - Property owned or occupied for less than 12 months |
| costs or 98.75% if the value if $50,000 or less. This | | | | - Property need not be 1-2 units (can be 1-4 units) |
| rule applies to purchase 1-4 units and no cash out | | | | - Max LTV will be determined by using the lesser of |
| refinance. | | | | 85% of appraised value or 85% of the original sales |
| Maximum LTV on Cash Out Refinance FHA Loans | | | | price. |
| Owned for More than One Year | | | | |