Can I refinance my house without a job? And would you

[Payton House]

Hello everyone,

So I bought my first house about 4 months ago with a 3.75% 15 year FHA loan for $75,000. And naturally quit my job the next day.. Okay let me explain, I had a job at Toyota as a mechanic paying me $2,000 a month, however, I also had an ecommerce business where I made between 8-12k a month and I hated my job at Toyota but I had to keep it until I made sure the house would close. Now I am still making good money online, but I will write off most of my earnings as deductions. The house is now worth about $110,000 and I am considering refinancing into a 30 year mortgage to make more cash flow when I rent it.

#Askbp

Anyways, my question is will a lender refinance my house even though I do not have a conventional Job? And would you refinance given that my rate is 3.75% and only a 15 year loan?

Cash flow if I didn't refinance would be around $200-$300 a month

Cash flow if I did refinance would be around $500-$600 a month (If I could refinance around a 3.75% - 4.25% interest rate)

P.S. Is it possible to refinance into another FHA Loan?

Thank you in advance,

Payton House

[Aaron H.]

Your best bet is to ask a few banks. Nobody on the internet is going to be able to give you a better answer than the lender themselves. Broadly speaking, you're going to struggle getting approved without a W2 job, especially if your current income is too new/recent to show up on a prior year's tax return.

You have a great rate and will still cash flow positive, I probably wouldn't bother. You're also going to spend several thousand dollars in closing costs to do the refi.