FHA ? for originators (loan, heloc, refinance, loan)

[TimtheGuy]

Is a FHA refi. considered cash out if paying off a seasoned 2nd mortgage that was not used to purchase the home? If yes, are the 95% ltv FHA cash out refis coming to an end? If so, when?

Thanks,
Tim

[Daddys///M3]

I'm pretty sure any non-purchase second money rolled into a first position refinance would be considered cash-out. Although I have heard rumors of 95% cash outs coming to an end, I haven't seen or heard anything as being substantiated and as far as I know HUD has not issued a mortgagee letter to that effect either.

[SmartMoney]

There are still pockets of portfoloio lending where HELOCs or seconds that have not been accessed or used in the past twelve months would be considered seasoned, even if they were used as purchase money. Those are far and few between, but they do exist, of that I am certain.

As for FHA 95% cash out, a few months ago, a few put out the "this is gospel and going to happen, all FHA cash out refis are going to 85%" and they have yet to happen. There are two sets of very different guidelines and for FHA cash out, one is for the traditional FHA loan amount and the other is for the high loan amount FHA loans. It's the high loan amount loans that have guidelines all over the map, are limited to 85% cash out and a whole slew of other regulations to follow.

[TimtheGuy]

Thanks guys!!

[renriq02]

if it's over 12months old then it's rate/term

if it's a HELOC and over 12months..and not recent cash pulls from the HELOC then it's a rate/term.