FHA will now allow borrowers to refinance paying off a PACE obligation as a rate and term refinance.Verify your mortgage eligibility (Oct 2nd, 2022)
FHA issued Mortgagee Letter 2017-18 , setting forth revised policies for insuring mortgages secured by 1- to 4- family properties encumbered with Property Assessed Clean Energy (PACE) obligations. Per the Mortgagee Letter, properties encumbered with a PACE obligation will no longer be eligible for FHA-insured forward mortgages. The Mortgagee Letter also clarifies that PACE obligations are existing debt that may be paid off using a Rate and Term Refinance. Current policies allowing the use of a Cash-Out refinance to pay off PACE obligations remain unchanged.
The revised policies are effective for case numbers issued on or after January 6, 2018.
I am one of the few mortgage lenders in California that can help homeowners refinance a home with a PACE (HERO) loan. Call me today at (888) 777-3671 or fill out the quote request so we can look into how we can get you out of this bad program, lower your payments, and solidify your tax deduction.”Show me today's rates (Oct 2nd, 2022)