How quickly can you refinance (with new appraisal) after a property purchase?
Hi everyone,
Let's say I want to buy a property with the 3.5% down payment FHA program which would leave me with a large amount of mortgage insurance to pay every month.
If I buy the house under market value (let's assume 75% of value), how difficult would it be to refinance the property a few months after the purchase using the equity in the house? I would go for a 25% conventional loan without PMI.
How many months do I need to wait for a bank to be willing to do a new appraisal and use that appraisal for the refinance (vs. the amount I paid).
I understand that there would be additional closing costs etc but even with those...putting only 3.5% down and then not paying PMI after a few months would be quite a steal.
Has anyone done this before? Have you encountered any issues?
Thank you!