Cash Out Refinance
• Allowed
• Maximum LTV is based on Length of Ownership:12 Months or More
The subject property must have been owned by the borrower as his or her
principal residence for at least 12 months preceding the date of the loan application in order to
obtain the maximum 85% of the appraiser’s estimate of value.
Less than 12 Months
A sales price, however, need not be considered if the property was acquired as the result of
inheritance and is or will become the heir’s principal residence.
If the subject property has been owned less than 12 months preceding the
date of the loan application as the borrower’s principal residence, the mortgage amount is limited to
the lesser of 85% of the sales price of the property when acquired OR 85% of the current appraised
value.
• Owner-occupied primary residence only
• Not allowed in the state of Texas
• New simultaneous subordinate liens not allowed.
