Matthew.. I will try calling you soon. If you get this before my phone call, please call me.
I agree 100% with what you are stating. Youa re right on point with your guidelines for cash out. I would have to include the 2nd in CLTV limits and would not any room for an exception on a cash-out.
I informed Mathew to be leary because I lose clients from time to time that are promised a loan that never materializes- that the guidelines are exactly as I said they would be - as i am sure you do too.
My advice to Mathew would be to listen to you. But if he wants to explore the other higher LTV option, advise him to submit for an upfront underwriting approval before ordering appraisal or paying any fees. If it doesn't work out he only loses some of his time.
Jeff''s responses are right on point with the lending guidelines and the available loan programs. You may have a broker or lender promising to get you more cash out, but in the end you will be restricted to 85% cash out. I do not lend in NJ - I highly suggest you call Jeff. He seems to know his lending guidelines well and is willing to tell you truth about what can and cannot be done for you.
Okay.. but again, you will still have cash-out issues... are you a Veteran? If not, the max cash-out would be 85% of the value of your home. There would be no other way to get more.. not even a home equity line with those credit scores.
If you have any other questions and or just want to talk about this, you can reach me on my cell @ 609-440-5133 or e-mail : firstname.lastname@example.org
Just log in to my website and search current rates in seconds and get a personalized detailed quote with no personal info required http://www.Amerisave.com/partner/njaramillo if you have any questions please feel free to call me @ 908-285-6700
Here is the answer to your situation... The cash out ltv and cltv for fha is 85%. The conventional cash out limit is 75 or 80 depending on fico and cltv same. This was all changed a year ago or so...
@ KM Brennan... Mathew actually called me and told me that he spoke with a lender, a 'direct lender'.. lol Who said they could do this. Again, Matthew has a 1st and a 2nd, the 2nd being a HELOC and the lender is willing to subordinate the 2nd. For cash-outs, the CLTV is maxed with the LTV limits... do you agree or not? I am only saying this because I don't know it all.. but now Matthew has a loan officer telling him this could be done. Looking for other insight.. and thanks for the kind words.
I have a new twist to my scenario above. Wells Fargo is willing to stay Subordinate on their line of equity, which means I am only looking to refinance $391K (1st mort balance) + around $60K cash out. I believe with a valuation of around $525K, that gets me to 85% LTV on the new loan. Does this help?