New FHA Refinance Rules for Owner Financing

FHA (in all of their wisdom) has changed the Refinance transaction rules for Owner Financing. Previously when you refinanced an Owner Financed transaction using FHA you were able to obtain a loan up to 96.5% of the appraised value of the home. Now FHA is limiting that loan to value to 85% of the appraised value (or a cash out transaction). There is still conventional financing available up to 95%, but the  guidelines for past bankruptcies, short sales, and foreclosures are much stricter. Please consult with a mortgage provider prior to going under contract as to determine the length of owner financing you require. Our preferred Mortgage Lender is Sherry Chadwick @ Loan Logic. She can be reached at 505-259-6440.