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95% LTV refinance options

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Valued Member

95% LTV refinance options

Hi everyone, I am looking for a bank that does 95% LTV refinance. I currently have a FHA loan and an equity loan that I want to combine and also pay off a car as well. I'm talking to Navy Fed right now and they can do it, but the rate is higher than what I would like. My middle score is 641.


Redstone FCU 5k, US Bank 11k, Suncoast CU 5k, Cap One Plat $450, Cap One QuickSilver $900, NFCU 8k, Firestone 1.2k, Ascend FCU 9.5k
Message 1 of 7
Established Contributor

Re: 95% LTV refinance options

any non-mortgage debt that you choose to pay off with the proceeds of your refinance loan makes your loan a cash-out refi which is subject to max ltv of 85% with FHA and 80% with conventional.  


Now what I'd recommend is simply do the refinance of the equity and the FHA loan to see if you can keep that LTV relatively low so that you can eventually remove any PMI but schedule the closing on this new loan to occur in the middle of the month so that you can effectively skip two monthly mortgage payments and then use the amounts that would be your regularly scheduled mortgage payments to paydown the balance of that car--maybe even refinance it to a lower rate if you can't pay it off entirely.




Licensed NC Mortgage Loan Originator
Message 2 of 7
Established Contributor

Re: 95% LTV refinance options

Seems easy enough. Please feel free to PM me if you would like to go over the details or need a second opinion.

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 3 of 7
Valued Member

Re: 95% LTV refinance options

Thanks for the replies. I am talking to Navy Fed and they can do 95% ltv, but the rate they are giving me is 6.875% which is really high. I'm not sure that is the way I want to go though, bc of the interest rate. Its putting my payment on up there since our taxes are extremely high here. Almost 3k payment Smiley Sad Trying to figure out what best makes sense and will save me the most money. I want to at least consolidate my credit cards and get all those paid off. Which is about 20k. The 3k payment includes the 20k in CC payoffs. The FHA loan limit for my county is $294,505. So, I can't go with another FHA loan. First balance is 265k, second is 49k and the CC debt is 20k. So, my thought was if I move forward with it, get the CC's paid off, wait a couple of months for the scores to shoot up and the 2 mortgages shows paid off, then I could refi again with them and get a lower rate. Would that make sense to do?

Redstone FCU 5k, US Bank 11k, Suncoast CU 5k, Cap One Plat $450, Cap One QuickSilver $900, NFCU 8k, Firestone 1.2k, Ascend FCU 9.5k
Message 4 of 7
Community Leader
Super Contributor

Re: 95% LTV refinance options

The primary reason the interest rate from NFCU is so high is because very few lenders do cash out to 95%, NFCU being an exception it appears.  I'm sure the credit score has some impact on it too.


From the numbers you've laid out, it seems that the 1st & 2nd mortgage combined equal about 90% of your home's value.  If the 2nd mortgage was used to purchase the home, then refinancing both mortgages into 1 with a conventional mortgage would result in lower interest rates than what NFCU is offering (and would be an option at nearly any lender, rather than just NFCU), but it wouldn't accomplish paying off the credit cards.  


If your goal is to pay off the credit cards with a new mortgage (and therefore paying off the 1st & 2nd mortgages will be a requirement) and still be able to get a mortgage at lower interest rates, then refinancing twice is a potential solution.  You will have two sets of closing costs however, it's not a guarantee interest rates will still be favorable by the time you are ready to do the 2nd refinanced, and appraised values don't always come in at the same figure.  Those are going to be the biggest risks. 


Another solution for the credit card debt & credit score issue is to take out a personal installment loan to pay off the credit cards, which will improve your scores, and then you could refinance at NFCU and potentially qualify for lower interest rates than what you are currently being offered.

Helping people with Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 5 of 7
New Visitor

Re: 95% LTV refinance options

I see I am months late to this thread but this info is exactly what I have been searching for endlessly for MONTHS!


Sorry for the long post but I am desperate. I have been trying to refi or get a Home Equity Loan/HELOC for a year. I have a lot of credit card/PL debt (past bad choices that I have learned from) that costs me $1500 a month. I could be saving close to $1200 if this was consolidated. I can make the min payments but balances do not decrease with the terrible APR and high fees. 


In Nov 2017 I attempted a FHA cash out refi - I work for a lender but we dont do any Home Equity products. That FHA appraisal came in at $282,000 as there were limited sales. I owed $239,000 and needed $32,000 to pay all off so that didnt work. 

In May 2018 I contacted my CU and tried for a Home Equity and they said they would limit me to 90%, that would be plenty so I paid for their appraisal. The appraisal was the worst I have ever seen using comps 14 months old when new ones were available (my dad was a local appraiser for 35 years in my area before retiring and he agreed it was bad). They came in at $272,000 - my area did not decrease in value. I sent better comps and he increased it to $282,000. Then I was told the loan anaylst was limiting me to 85% and they denied me. 


I held off on everything as homes were put up for sale on my street (less then 1/2 mile from me) so I was waiting for them to sell to give better comps (365k, 375k, 360k). They all sold between June and Sept so I went back to my company in Oct 2018 and tried another FHA cash out. I know my home is not worth 360k as it is smaller than those homes but it is the same type, same area just a bit smaller. The appraiser for this one refused to use the comps on my street as they were 400 sq feet bigger. My home is 2008 sq feet they are 2400sq ft. The irritating part is the appraiser from 2017 used homes with 2450-2500 sq feet with no issues. 


I have spent hours reseraching and talking with every lender I can find. My issue is my scores range from 623-653 and I need more than 85% IN CASE I get a crappy appraiser again. My local CU and most I have talked with say they can only do 85% LTV with my 623 score. I have paid for 3 appraisals now and although the comps support at least a $315k value it will all depend if I get a an appraiser like the one from 2017 who chooses the slightly larger comps which we know is not guaranteed. 


As of this month, my TU is 644, EX 623 and EQ 653 but these vary based on who pulls them. I was hoping to find a HELOC who used only EQ as that looks the best and will allow 90-95% cash out.... 


I am sorry for the long rant but seeing this post gave me slight hope. I have not yet applied at Navy but I just opened an account yesterday. I was hoping you could give me more info on what you chose to do and any info on the 95% LTV you were offered. 

If anyone else has any suggestions I would be greatful. (I have tried personal loans as well and cannot get approved and cannot find a co-signer). 


Message 6 of 7
New Visitor

Re: 95% LTV refinance options

Hi! Your situation sounds almost exactly like mine. Can you tell me what was your final outcome?
Message 7 of 7
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