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Two appraisals are required on cashout refinances exceeding 85% LTV.

All cash out refinances with LTVs above 85% require two appraisals, each of which must be completed by FHA roster appraisers. When values differ, the lower of the two values will be used. The other requirements for refinances exceeding 85% LTV are as follows:

The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.

If said property is encumbered by a mortgage, the borrower must have made all of his/her mortgage payments within the month due for the previous 12 months, i.e., no payment may have been more than 30 days late and is current for the month due.

The property that is security for the refinanced mortgage must be a 1- or 2-unit dwelling.

Subordinate financing may remain in place, but subordinate to the FHA insured first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.

Any co-borrower or co-signer being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.

The second appraisal to be ordered by the broker from the FHA Appraisal roster

FHA has higher closing costs besides the 2 points charged- you may need to pay for two appraisals - one of which from the FHA list.... hope they know your neighborhood.

Call me if you are considering FHA to understand your options.  312-863-9560 Barbara