I'm looking for help and some ideas on purchasing my first property. I want to buy a 3-4plex to house hack. I would like to use and FHA loan to purchase this due to the low down payment requirements. The issue I have is that my current home (single family home) has an FHA loan and I would need to refinance in order to purchase another property with an FHA.
The current rates make this refinance difficult. Below are the numbers and few options I have gotten so far. I’m hoping you can help me think through some options to make this happen.
My credit score is in the 700-720 range and I have about 25K for a downpayment.
Current mortgage: FHA ARM 3.375 1271/month
Refi Option 1: 30 year conventional 5.25% 1306/month, 3500 closing costs
Refi Option 2: 30 year conventional 5.875% 1443/month, 1400 closing costs, 17K cash out
Refi Option 3: 30 year conventional 4.625% 1258/month, 7300 closing costs,
I’m hoping to get some advice and creative ideas on how to go about this.
I'm curious to see what option you decided going with.