Conventional rate/term refinance –

This one carries a maximum loan to value of 95%. If your current loan is owned by Fannie Mae or Freddie Mac, and if your loan was insured by either of them prior to 6/1/2009, you may be eligible to have the appraisal waived and the loan to value may exceed 95% in some cases. If you are unsure if your home owned by Fannie or Freddie, call us and we can tell you if we have your name and address.

Conventional cash out refinance

The maximum loan to value allowed is 85%. PMI is required unless you want the lender to pay it for you, in which case rates are slightly higher. Appraisals are almost always required with this type of refinance.

RD – (Rural Development/USDA purchases)

Your current loan must be Rural Development in order to refinance with another Rural Development loan.

VA interest rate reduction loans – (IRRRL)

This is the most streamlined, limited documentation loan available. If properly packaged up front, and if you are qualified for appraisal waiver, you basically sign preliminary disclosures and then wait for a closing date. In today’s very low interest rate environment these loans have become extremely popular.

VA cash out loans

The biggest advantages are a higher loan to value and no monthly mortgage insurance premiums. The maximum loan to value in most cases is 90%. When borrowing for the purpose of paying off a 1st and 2nd mortgage, and receiving no cash proceeds at closing, the loan amount can be up to 100% of the appraised value.


The maximum loan to value for an FHA rate/term refinance is 97.75%. Cash out refinances are available with a loan to value up to 85%. For refinances, it is beneficial if the loan was insured by FHA prior to 6/1/2009 for reduced monthly mortgage insurance premiums.