Updated about 3 years ago on . Most recent reply
Refinancing FHA Loans
I used an FHA loan to buy a house hack in October 2021. This was a value add property and considering appreciation over the last year, I should have some equity in the property. I'd like to refinance and use the FHA loan again to buy a property at the end of the year. Can I refinance into a conventional 90% LTV or is this unheard of? As it is, this property has an NOI of $500 while I occupy one of the units. I'm estimating around $1900/mo NOI when I move out. Any advice for me? Thanks!
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Chris Henry I would bet that your loan has a rock bottom interest rate. I mean, sure, any lender would LOVE to refinance you out of that rate into a higher rate now....but there are specific things you'll need to know about getting a 2nd FHA loan - specifically that you need to have 25% equity in your vacating property in order to use rental income to help you qualify. Now, you may not need that rental income...but you might. I would certainly lean on getting prequalified on your NEW primary home first just to make sure you can even get an FHA loan on your next home. Hope that makes sense.