FHA changes guideline for REFINANCING again!

FHA is changing its refinancing guideline again effective April 1, 2009. The loan to value cannot exceed 85% and MUST have 2 appraisals in order to do so. Credit scores continue to be a key factor as well. It's very hard to get any loan approved under 620 now.

FHA used to allow up to 95% loan to value and just recently added the 2nd appraisal stipulation. If it's a townhome two full appraisals are required, but if its an individual home a ride by is acceptable for the second valuation. This will certainly hinder a lot of homeowner's from utilizing their equity if necessary.

Homeowner's should continue to maintain their credit scores and not be late on any accounts that report to the credit bureau's. Credit scores and loan to value are a mandatory factor when purchasing or refinancing a home. Your excellent credit continues to open doors, but mediocre and poor credit can turn your dream into a nightmare nowadays.