Effective April 1, 2009, Delaware 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.  January 1, 2009, FHA required two appraisals for cash-out above 85% LTV.  Now there are eliminating cash-out above 85% LTV all together for Delaware Home Owners.

Beginning April 1, 2009, FHA is imposing a temporary change which will now require homeowners in Delaware 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 at 302-703-0727 or you can APPLY ONLINE HERE.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713