What can my max LTV be for a refinance with cashout?

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Justin Sheftell, "Courtesy Mortgage"

Rate sheets and partial guidelines don't paint the whole picture. Almost the entirety of Washington with the exception of some waterfront and some areas around Yakima show declining market indicators in one way or another. This typically reduces the allowable LTV by 5%.

Of course, credit and the number of units on your property also impact this.

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Justin Sheftell, "Courtesy Mortgage"
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Justin Sheftell, "Courtesy Mortgage"

Should also note that TPO is not allowed on the new 9/21/09 guidelines.

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Justin Sheftell, "Courtesy Mortgage"
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Larry Jacobson, "Clearpoint"

Genworth guidelines can be found here. Effective 9/21/09, Cash Out to 85 is eligible for insurance at 700 FICO. Genworth does not consider Washington a declining market....so I suspect pennyrain can find a conventional loan to 85%.

It is good to see MI guidelines are loosening.

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November 02

Larry Jacobson, "Clearpoint"
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Do yourself a favor and don't go over 80%

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Gregorio Denny, "Gregorio Denny"

Crap the scenario didn't go through on the scenario pricing link, but you can figure it out yourself.

Seriously Gregorio, just because you may not be able to do it, does not mean that no one else can either.

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November 02

Gregorio Denny, "Gregorio Denny"
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Close one then.

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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C/O Refi with MI

I just ran the scenario for you Gregorio...here you go.

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Tammy Stockdale, "Colorado Mtg Broker"
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Gregorio Denny, "Gregorio Denny"

Gregorio...it is available & MI is available under ideal conditions. It is what it is.

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Gregorio Denny, "Gregorio Denny"
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Saying that 85% conventional, cash out is available, is like selling a car without a steering wheel. There is no MI for it so it's pointless and will go nowhere. Andrea, please continue to act upon those trying to pretend that they can get the 85% cash out other than FHA, it's dishonest and a distortion of the facts. This is why Zillow needs experts to look at flagged quotes. Sometimes something may show on a rate sheet (such as a my community program) and it is not available because of MI. Checking rates cannot be just about looking at the rate sheet one much look at the product matrices as well to know what can or cannot be done.

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Larry Jacobson, "Clearpoint"

Larry, good to see you! Been a long time!

Tammy :)

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Larry Jacobson, "Clearpoint"
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?????

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Bryce and PC,

I agree the pricing is not the point. I was merely pointing out that there are lenders who do C/O's to 85%. You are also right that FHA, assuming they qualify for it, would be a better choice or limiting it to 80%. However, the fact of the matter is, if a borrower does not qualify for FHA, and need up to an 85% LTV for a C/O...it IS available assuming MI is available.

I spoke with my A/E for one of my lenders who goes to 85% on C/O's and depending on the circumstance, MI has not been a problem. Of course, that is going to be the ideal deal....800 Fico, tons of reserves, etc. But it is available regardless.

Tammy

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November 02

Bryce Johnson, "Bryce P Johnson"
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Regardless, PMI shouldn't be an issue because you should just cap your LTV 80%. That extra 1.5% isn't going to be worth the PMI with the FHA or conventional financing.

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November 02

PaymentChoice
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The rate sheet is irrelevant, all rate sheets that I see have the program/LTV listed. What you would need to look at would be the PMI guidelines as those are what will make or break the deal.

Here a link to one PMI Co that I know will go up to that LTV on this scenario in SOME States.

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November 02

Sofia Nygaard, "Sofia Nygaard"
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Andrea Smolin, "AndreaSmolin"

Exactly Payment Choice, there are no PMI companies I know of (most are National and they do not provide PMI on cash out though) and if there were, like you said, it'd be quite costly.

Sounds like Tammy has one, but I think FHA might still be better price-wise if you wanted to go to 85%.

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November 02

Andrea Smolin, "AndreaSmolin"
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Tammy,
You do not need to provide documentation on Zillow advice.

We are just getting some flags recently that deal with this issue and we want our customer service team to be as educated as possible about this subject too.

If you have that rate sheet, I'd love to take a look at it, please email me at Andreasm@zillow.com when you get a chance.

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Andrea,

No link, but here's an example of one of the lenders and I'd be more than happy to fax or email you the rate sheet. On cashout refi's: .625% hit for a LTV 80.01-85% on a Fico of 740 and up and a 1.5% hit for Ficos of 720-739.

Tammy

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November 02

PaymentChoice
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@ Andrea

Per Fannie and Freddie you can go up to 85%, however it is the PMI Co's that will determine your Max LTV by granting or denying the required PMI coverage.

If you want to look at Fannies guides you can do so here.

Just remember, it is ultimately going to be the need for PMI that will dictate how high of a LTV you can go to.

For FHA you are capped at 85%.

@ Sofia

I don't know about WA but in many other States there are a few PMI Co's that will do up to 85%. I would never go that route as it almost always ends up being more per month with all of the pricing add-ons, FHA all the way!

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Andrea,

We have to provide documentation on discussion boards now?

Tammy

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November 02

Sofia Nygaard, "Sofia Nygaard"
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Really, who?

I know Fannie Mae will allow 85% but the lenders can't get MI on cash out so they have the 80% overlay. At least that's the case here in WA.

Some portfolio lenders can go to 90% but the rate is over 6% I can't see how that'd be advantageous to a borrower.

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November 02

Bryce Johnson, "Bryce P Johnson"
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Andrea Smolin, "AndreaSmolin"

effaniemae.com

https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf

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November 02

Andrea Smolin, "AndreaSmolin"
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Does anyone have any links to documentation that would state the max LTVs allowed for a conventional refinance?

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November 02

Bryce Johnson, "Bryce P Johnson"
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85% is the Fannie max, but the trick is getting MI at 85% cash out unless it's FHA.

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Sofia,

Not true. There are numerous lenders who will do 85% on a conventional cashout.

Tammy

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November 02

Sofia Nygaard, "Sofia Nygaard"
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80% max on conventional cash out. :)

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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85%

Tammy

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November 02

pennyrain
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pennyrain

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So if I wanted a conventional loan (not FHA) for my refinance what could my max LTV be?

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November 02

Tammy Stockdale, "Colorado Mtg Broker"
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Are you eligible for a VA loan and if so, if this current loan a VA loan?

Tammy

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November 02

Sofia Nygaard, "Sofia Nygaard"
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Yes it is, the only thing to keep in mind is- 85% is the max cash out ltv but that is for an FHA program which includes mortgage insurance. If you want to keep your ltv to 80% you can go Conforming and have no mortgage insurance and likely a better rate. So what you want to consider is, which is more important- the cash out or the lower payment?

A good mortgage broker can help you decipher your options. Good luck!

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November 02

Bryce Johnson, "Bryce P Johnson"
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