FHA just announced a rule change on cash out refinances effective with Case Numbers ordered September 1st. FHA’s max loan to value and combined loan to value on cash out refinances will now be 80% instead of 85%.

Next Ginnie Mae who issues mortgage bonds for both FHA and VA loans announced that on VA cash out refinance loans with a loan to value > 90% that Ginnie Mae will place these loans in a special pool of bonds started November 1st. What does this mean? I expect these types of loans will have higher interest rates for the borrowers as the VA allows for a cash out refinance up to 100% LTV of their home.