Cash-Out Refinancing Loan to Value Reduced to 80%

As of September 1st 2019, the maximum amount available for a cash-out refinance will be decreased to 80% of the homes current market value. Previously the new loan could be equal to 85% of your homes worth. This 5% drop is inherently due to the  high levels of cash-out refinance activity in recent years adding to government risk. Ultimately this move by the FHA is aiming to ensure the repeat of the events leading to the last recession are not in play.