Effective April 1, 2009, Rhode Island homeowners looking to take cash out on their homes, will have a tougher time.
According to a letter issued by the Federal Housing Authority (FHA), FHA plans to make it tougher for borrowers to secure a cash-out refinance mortgage.
Until now homeowners only needed to have 5% equity in their properties and have a record of on-time payments for at least the last twelve months.
Beginning April 1, 2009, FHA is imposing a temporary change which will now require home owners in Rhode Island and many other states, to have at least 15% equity in their homes.
Other changes included:
Must be primary residence to get cash out.
You must have a 12 month history of owning your home to get maximum cash out of 85%.
Your existing mortgage must be current and no delinquent payments.
If your loan amount is above $417,000, a second appraisal will be required.
Non-owner occupant borrowers cannot be added to qualify for cash-out refinances.
This is a good opportunity to refinance before the end of the month to take advantage of the new changes. Call me today.
Lynda Mckenzie
RI license#137627/NMLS#137627
Direct: 401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web: http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL
*This is not an offer to lend. 
Obama Refinance Plan For San Jose Homeowners AnnouncedHome Affordable Refinance Program Update Harp 2 Bay Area San Francisco California March 2012 Guidelines for Purchasing a 3 to 4 Unit Property with FHA Financing in Alameda, CA8 Year Fixed to 30 Year Fixed. You Can Choose Your Loan Term In San Jose
