Traditionally, Cash-Out refinance loans are limited to a loan-to-value (LTV) ratio of 80%, but for a limited time, the conventional cash-out 90 program allows for a cash-out refinance up to 90% LTV, giving borrowers access to 10% more equity to use toward their goals.
Source: AI Generated
Program Highlights:
- Maximum LTV: 89.99%
- Minimum LTV: 80.01%
- Minimum FICO Score: 680
- Maximum DTI: Determined by DU/LPA, but must not exceed 50%
- No Mortgage Insurance (MI) requirement
- Primary Residence only
- Eligible Property Types: 1-4 unit SFR, PUDs, and Condos
Key Features:
- Simplified process with competitive interest rates
- No mortgage insurance required
- 30-year fixed rate only
- Borrowers are eligible to refinance as a rate and term refi after 6 payments to lower the interest rate if better rates available and avoid cash out pricing adjustments and LTV limitations.
Loan Amount Details:
- Maximum Loan Amount: $806,500 on 1 unit
- Current conforming loan limits on 2-4 units
- No minimum loan amount
Acceptable AUS Findings:
- DU/LPA Approve/Ineligible or Accept/Ineligible
- Refer with Caution findings acceptable with:
- DTI ≤ 45%
- FICO ≥ 700
- 12 months or more PITI reserves
Additional Program Details:
- 6-month seasoning required on first mortgage
- Escrow waivers available
- No maximum cash-back limitations
Ineligible Scenarios:
- No Manufactured Homes
- No piggyback HELOCs
- No temporary rate buydowns
- No pre-payment penalties
Conclusion:
The Conventional Cash-Out 90 program offers a unique opportunity for eligible homeowners to tap into a higher percentage of their home's equity. This program provides competitive interest rates, streamlined processes, and flexibility for borrowers seeking to access funds for various financial goals. By understanding the program's features, requirements, and limitations, borrowers can make informed decisions about leveraging their home equity effectively.
