In a two-closing construction-to-permanent transaction, the permanent mortgage delivered to Fannie Mae may be closed as:
a limited cash-out refinance transaction, or
a cash-out refinance transaction.
Two-closing construction-to-permanent mortgages are subject to the limited cash-out and cash-out refinance maximum LTV, CLTV, and HCLTV ratios based on the property type provided in the Eligibility Matrix, as applicable. For the borrower to be eligible for a cash-out refinance transaction, the borrower must have held legal title to the lot for at least six months prior to the closing of the permanent mortgage. All other standard cash-out refinance eligibility and underwriting requirements apply.
Note: Two-closing cash-out refinances are not permitted on a manufactured home.
