REFI FHA

2 Replies

How long do you need to wait to REFI an FHA into conventional? Purchased duplex about 4 months ago and would like to use another FHA to buy and move into another duplex about 20 miles away in a nicer area. I understand you can only have one FHA at a time.

 Are there any equity/time requirements on current property refi into conv.?

Is it realistic (to be able to) to refi and buy another duplex in a nicer area with an FHA if I can justify wanting to live in a nicer area?

Trying to weigh options and plan!:)

Thanks to all who contribute!

Timing aside, wouldn't it also hinge on how much your current duplex would appraise for by a conventional Lender, vs what you paid for it? Do you have 40%+ increased equity* yet, because if you don't, how will you be able to refinance it (typically only 70% LTV) anyway? All the best...

* [By "40%+ increased equity", I don't just mean 40%+ increase in the value of your deposit]!

@Matthew Mason I recently refi my duplex out of FHA. I agree with comment before. Think you are asking the wrong question. 1) how are you going to refi to conventional? Has the market increased/you made improvements to now have 20% equity on new appraisal? It took me a 1.5 yrs to do this. 2) how are you going to qualify for FHA mortgage number two while having mortgage 1? Do you make enough to qualify for both on your income? What is your debt to income ratio? Once you have two years of rental income on your tax returns you can count a portion of rents toward income in qualifying for the mortgage. Would speak to your mortgage guy about that. Good luck!

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