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A refinance is
considered a "Cash-Out" refinance when the borrower refinances
their mortgage for more than their current balance and closing
costs. That is, the borrower would like to leave the closing
with additional money for things like debt consolidation, home
improvement, college tuition or any other needs that may arise.
In order to
receive extra funds, however, your home must have sufficient
equity. The most attractive feature of an FHA "Cash-Out"
refinance when compared to a Conventional "Cash-Out" refinance
is that the FHA permits you to borrow 85% of your properties
value compared to 80% with Conventional loan programs. Simply
put, on a home valued at $100,000, you can borrower $85,000 with
FHA compared to $80,000 under Conventional programs.
In addition, an
FHA "Cash-Out" refinance carries the same relaxed credit
guidelines and expanded qualifying ratios as does a standard FHA
mortgage. Its important to note that your current mortgage does
not have to be an FHA mortgage to take advantage of an FHA
"Cash-Out" refinance.
Contact your
American United Lending Partner today at (800) 555-2035
to see if an FHA "Cash-Out" refinance is best for you. Or simply
apply on line. |
