Getting out of FHA Loan after HouseHack?
Happy Fall BP Gang,
Due to numerous circumstances, I think a BRRRR house hack is a great strategy for me to implement for REI debut. My question though is if I am able to get out of my FHA loan through a refinance after I've lived in the property for a year. If yes, this opens up the ability to use another FHA loan correct? If I am in the financial position to not need a 2nd FHA then perhaps I can use a HELOC instead to save on costs from a refi.
Happy Holidays
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@Alex Pepe you have received a lot of solid advice here. I have seen several of my clients who did BRRRR deals using FHA. Normally it took maybe 2 or 3 years for the equity to be there for them to refinance out. I am here in the Chicago market, so we have seen some very nice appreciation too. The thing with FHA is is that you are normally buying a property that is in really good shape. FHA makes it challenging to buy a fixer upper, so to add value you normally would have to do cosmetic remodeling OR wait for the market appreciation to deflate the value of your 1st loan so that you have that 25-30% equity cushion you need.