Refinancing out of FHA for second home - Rate and term?
Good afternoon everyone!
Long time lurker, finally becoming an active member. For some background, my wife and I live in Northwest Arkansas and currently own a home near Beaver Lake. We closed in July of 2018, and spent a year renovating the property while living there full time. In October of 2019 we started renting out our home as a STR, and it's absolutely taken off. A typical month in the slower season returns around $2,300, and the summer season should see around $3-4k/month.
We're looking to purchase our second home, and would like some advice on next steps in regard to financing. We're currently at a LTV of about 86% (estimated on original appraisal/current comps), so cash out refi isn't in the cards, at least not yet. However, I've spoken with a couple of lenders regarding rate and term, which I assume would be refinancing into a conventional loan with PMI?
Lender stated: 30 YR Fixed, 3.875%, Estimated Principal & Interest= $672.44 (Does not include taxes and insurance), Estimated PMI= $77.46
So, here are my questions. Any advice would be greatly appreciated:
-If we were to refinance into a rate and term, would it be appropriate to purchase the second home (multi-family) via FHA again to take advantage of 3.5% down again? Is there a waiting period between refi and second home purchase?
-Will any of our Airbnb income count towards purchasing the second home?
-Should we just wait until we hit the threshold (80% LTV), then cash out refi and allocate that money towards the next purchase?
Thank y'all for the advice!