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FHA Cash Out Refinance - Texas - Lender Required

Details:
Home Type: Single Family
Year Purchased(from builder): Nov 2008, Houston TX
Original Appraised Value: 290K
Loan Balance: 243K
Current Loan: FHA 5.5% for 15 Years, No Refinance since then.
Required Loan: FHA Cash-Out Refinance
- No Late payment in 12 months, has steady job, credit in mid 600
- Is streamline possible?, Is appraisal required? - Is no closing cost option available?
- Please let me know lenders who can do this 
  • July 15 2011 - Houston
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Answers (5)

Profile picture for Texas Banker
Maximum cash out is 80%, what you are asking is not possible.
  • July 28 2011
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Cashout on an FHA won't work in Texas.  

No, streamline is not available for "cashout." 

Yes, an appraisal will almost certainly be required. 

Yes, no closing costs will certainly be available with some lenders. 

I'd plan to not cash out and if you get surprised by a high appraisal, you'll have some room.   Conforming limit is 80%.

  • July 19 2011
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An FHA Cash out refinance will require an appraisal, full income qualifying,  ( not a streamline ) and capped at 85% loan to value. Your loan balance is about at 85% now if the value is still at $290K so it probably would not make sense unless your value is $300K or higher. You can do a streamline without cash out or appraisal though. Are you paying about $56/month for MI now?  Ah, Wayne's point makes a cash out moot anyway.
  • July 15 2011
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Unfortunately, an FHA Cash Out refinance is not available in TX.  In fact a Cash Out conventional loan is limited to 80% Loan to value, and you would be a 83%. You could lower your payments by about $800 if you did an refinance to an 4.5% FHA 30 yr fixed (with appraisal if you wanted to roll closing cost in new loan) but with your equity a conventional loan would be a better option. With lower payments perhaps you could borrow funds and use savings to pay back a short term loan.
Texas law is very specific and somewhat restrictive on Cash Out options, and if you have more questions contact me.
  • July 15 2011
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Most lenders will do an FHA streamline with scores above 640, Quicken, Citi mortgage, Wells fargo.  You can do a streamline without an appraisal but you must pay for all costs they cannot be rolled into the new loan, only your principal balance and new upfront mip.  If you get an appraisal you can add your new escrow and costs into the loan. You can look at the lender paid option route to help cover some of your costs.  Let me know if you have any additional questions. 
  • July 15 2011
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