Planning out my long-term vision. Let's say I purchased my property with 3.5% down on an FHA loan. Once I meet the one year requirement to be able to rent it out and move to my next FHA purchase, I understand the first home needs to be refinanced to a conventional loan to make that happen. My question is, what type of loan would that be (primary home, secondary home, investment property) and how much equity would I likely be required to have? Would I be able to rent it out without having the 20% equity requirement for an investment property? Or is 10% equity/90% LTV more realistic/common for refinancing out of an FHA to a rental?
Thanks for your time.
It would be an investment property loan, max 75-80% LTV. You can’t do a new fha loan more than every 2 years anyway.