Updated about 2 months ago on . Most recent reply
First Home, and House Hacking
I currently have a mortgage that was financed through an FHA loan. I've seen recommendations suggesting it may be beneficial to refinance to a conventional loan after a year. I've lived in my property for three years now and am considering renting out one of the rooms.
My main question is whether it makes more sense to convert to a conventional loan or stay with my FHA loan. I still plan to rent out a room regardless, but I want to explore whether refinancing could help me manage the property more effectively and maximize my return on investment (ROI).
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#2 Creative Real Estate Financing Contributor
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- Charleston, SC
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#2 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
There is no juice in refinancing from FHA to anything else just for the sake of no longer having an FHA loan. The damage is done when the loan is funded, not after. The only reasons to refi now would be to lower your rate, pull cash out of the equity in the property in a cashout, removing a coborrower from the loan, or getting rid of your monthly mortgage insurance (MI) payments.
You do not need to refi into a different loan type to be able to rent the property.
- Patrick Roberts
