What is a cash out refinance? Lenders use the term “Cash Out” when the purpose of the refinance is the take cash out of the equity in the home to pay off a second mortgage, debt such as car loans, credit cards or just to receive cash in hand. FHA loans still allow you to cash out up to 85% of your home’s value, but FHA will only consider Primary Residences and will require an appraisal. FHA will allow for a Cash Out refinance on manufactured homes up to 85% too. For any cash out refinance over 80%, FHA is the only way to go. Rates are typically the same for FHA Cash Out refinances as they are on Purchase loans.

Currently, Conventional Loans will only allow you “Cash Out” if you are borrowing less than 80% of the value of your home. For manufactured homes, you can only go up to 65% with a maximum of a 20 year term. Rates are typically a little higher for Conventional Cash Out Loans.

Homeowners who are refinancing to do “Green” Energy Efficient Upgrades please look at our Green Savers Loan Programs.