For the few years following the housing market crash in 2007 cash out refinances became a rarity. First, the number of homeowners with enough equity to get cash out dropped dramatically. Second, lenders tightened their standards on cash out refinances. But as we press forward toward 2014 cash out refinances are making a comeback. Housing values have been increasing significantly in many parts of the country and that has opened the door for families to get some cash out to make home improvements, pay off credit cards or other expensive debts, or pull some money out for a variety of other reasons.
The lending standards for cash out refinances remain relatively tight but homeowners with enough equity can still take advantage of cash out refinances while rates remain historically low. The FHA allows for cash out refinances of up to 85% of the current appraised value of a home and the loan limit is 75% for most conventional cash out refinances.
Life is always full of surprises and sometimes an infusion of cash is needed. If you have equity in your home and would like to learn more about the FHA cash out refinance options or others contact us in the form on the right today. One of our counselors can point you in the right direction.