FHA Cash-out Max LTV and VA Refinance Max LTV

FHA Max LTV for Cash-out Refinances

As of August 1st, 2019, HUD issued FHA Mortgagee Letter 2019-11, which reduces the current Maximum Loan-To-Value (LTV) and Combined Maximum Loan-To-Value percentages to 80% on Cash-out Refinances; effective with all case numbers assigned on or after September 1st, 2019.  Based on this announcement, Gateway will require all FHA cash-out loans with a LTV/CLTV > 80% to be delivered for purchase by September 30th, 2019.

VA Cash-out Refinances Exceeding 90% LTV

As previously announced in Gateway’s announcement dated  August 2nd, 2019, Gateway has aligned with GNMA’s publication of APM 19-05, Revised Pooling Eligibility Requirements for VA Refinance loans.  The last day Gateway will purchase VA cash-out refinances above 90%, where the borrower converts any amount of home equity into cash, is October 4, 2019.  In addition, the first payment due date MUST be on or before November 1, 2019 for loans purchased prior to the October 4, 2019 deadline.  Gateway will continue to purchase VA cash-out refinances up to 100% after the above date, when the borrower has not taken any cash out from the transaction.

Please direct any questions to your Regional Sales Manager