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HUD Revises Combined Loan To Value Limits

HUD has announced changes to their FHA guidelines effective this week.  The changes affect the CLTV or combined loan to value ratio for all loans with subordinate financing.  The new limits are as follows:

  • Rate and Term Refinance (no cash out) with new or existing subordinate liens is 97.75% LTV/CLTV
  • Cash Out Refinance with existing subordinate financing is 85% LTV/CLTV
  • FHA to FHA Streamline Refinance with or without appraisal is 103% CLTV

The CLTV calculation does not include the Financed Upfront Mortgage Insurance Premium for any type of refinance. The total loan amount cannot exceed the applicable county loan limit.

Interest rates are at historical lows. If you have been considering refinancing, please call me at 775-250-4421 for your complimentary “Total Cost Analysis”. Once you have all the facts, you will know if refinancing is right for you.