How to get past the $100k cash-out limit on the new Conforming Jumbo

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we've had the new conforming jumbo since about April 2008, and lot of you have been asking to consolidate your existing 1st and 2nd's into this product which until 12/31/07 has a max limit of $729,750.

Unfortunately, if your 2nd is greater than $100k, your out of luck since the guidelines don't allow more than a $100k consolidation (cash-0ut). For example if you had a:

1st loan of $350K
2nd loan of $80K
3rd loan of $100K
Total debt of $530k

it would be nice to get one new 30 yr fixed for $530k, unfortunately the way to get their involves multiple refinances.

1st you'd refinance to $417,000 on the 1st and choose to subordinate the existing 3rd for $100k. Since the current 1st and 2nd = $430k you would need to come up with $13K to close.

All of this assume your FICO and LTV are within the lender's guidelines (think FICO 720 min and LTV <70% and you should be fine).

So now after you complete the 1st finance you move on to the 2nd one. This time you get a new loan for $517,000 (remember we're capped to max $100k cash-out at a time).

What about rates, well right now the conforming jumbo is about 0.75% higher than a conforming loan.

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