Finance options for second home?

[Michaela Manco]

If I currently have an FHA loan that was used to purchase a multi family 3 years ago, and would like to buy an owner occupied single family while keeping the multi as a rental, what are my down payment requirements? Is it favorable to refinance the current FHA into a conventional loan and then free up my ability to use an FHA loan for use on the single family?

[Mackenzie Grate]

I'd run the numbers. Refinances cost money. They aren't free. So the money you save by making a lower downpayment with an FHA, may be offset by the closing costs of the refinance and the closing costs of your new FHA loan. It really depends on the price of the property you are looking to buy. See if it makes sense to do that before going through the hassle. :)