I currently have a FHA loan on my primary residence. I want to get the equity I have on the house to invest in a multi family. I need advice like can I qualify for another loan?
@Gustavo Zamora , typically you need MORE than 20% equity to cash out refi or pull a home equity line. Sometimes you can find a lender that will go up to 90% but they are fewer and further between. Finding out is very easy: start calling banks and asking what they require, and you will quickly learn if you will qualify or not.
If you are looking to purchase something that has 5 units or more, you can get a commercial loan which is sometimes easier to quality for.
If you are looking to purchase something under 5 units, you can get a conventional loan. If you are you going to stay living at your primary residence, you will have to put 20% down most likely if the new property is going to be your investment property.
As @Evan Polaski mentioned, you want to have more than 20% of equity in your home to get a refinance. How much equity do you have in the house and what size multifamily are you looking to buy?
@Evan Polaski Thank you for the information! I will be calling around first thing!
@Tina Tsysh Thank you for the reply! I have 82 thousand in equity, and I’m looking to purchase a duplex .
@Gustavo Zamora that is a pretty good amount of equity if your home is $400,000 or less. If that's the case, I would do a refinance and put that money on your next investment. If you are looking for a duplex, I believe you can get an FHA loan if you plan to live on one side.