Let's say I have two properties, each acquired using the VA home loan, and I want to keep them both. I want to get my VA eligibility back on one of the homes in order to use it to acquire another home, but the problem is I only have about 8% equity on the home I want to refinance, which is worth 130k. Since I have such low equity, a conventional refi is out of the question as I don't have the money to reach the 20% mark. I do, however, have the 3.5% necessary for an FHA, but I don't know if it's within the realm of possibilities to do that. Is it possible to refi into an FHA?
@Michael Volek If you FHA loan has not been used, then yes you can refi into a FHA. The LTV would be dependent on if you are doing a rate-term or cash-out. Also, since this is a new FHA loan, you have to owner occupy the property for 1 yr from the closing date of the loan.
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