FHA Cash out refinance
FHA CASH OUT REFINANCE
Have you found yourself in a position where you have paid down your home, or you have seen the market conditions in your area positively affect your property value? You may be able to refinance and even pull money out of your home.
One of the many benefits of owning a home is that you get to decide what to do with equity that you have gained through paying the home down or seeing appreciation in the home’s value. You can sell the home and keep the profit, or refinance the home and get some cash out to use however you like, it is your money.
FHA allows borrowers to refinance their home and take out up to 85% of the value of the home in cash. The borrower must meet all FHA refinance requirements, and again not exceed 85% of the value of the home.
Here is an example.
You buy a house for $100,000. After 6 years you owe $89,000 on the home. The value of the home based upon market conditions and homes that have sold in the area is currently $119,000. In this scenario you can refinance his home and borrow over $24,000 on your home.