I own my personal home, got it under FHA loan. looking to move out and keep under an LLC. I have a good amount of equity in it and would like to cash out. I would like to use the money as a down payment on another home, or as down payment for an investment property. Is this possible?
You have a personal home with a FHA mortgage and you want to access the equity, put it under a LLC and move out, is what I understand.
If the property is already owned by a LLC, it might not be possible to refinance it through another residential loan. You might need to refinance it as an investment property but the rate will be higher.
If the property is not owned by a LLC yet, you can refinance it or take out a HELOC but you need to be living there since you are most likely telling them that it is your primary residence to get the best rate. You need to be careful that you do not lie to the lender.
@Juan Vargas thanks for posting! Always great to hear from a fellow Texan. Now, please be careful. We have very strange cash out laws here in our state. Lots of nuances to what you are asking that will affect you here differently than any other state in the US. My recommendation is that you speak with a local lender and get prequalified. That way you will know for sure what to do (and what you are not allowed to do as well). Likewise, you might need that rental income to help you qualify - you may not...but you may. So make sure that any lender you work with allows rental income to be used right away. That way, the rental income of your current home is used to offset the higher mortgage payment you will have from taking a cash out loan. Again, maybe you have strong income - but just in case, ask them that question - will you use the rental income of my property to help me qualify.