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

Question

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. · Answer

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.

Dawn Brenengen · Answer

@Payton House You would need two years of your business income to qualify to refinance. I personally wouldn't do it even if you could qualify. You have a great rate. Just pay it off on the current schedule.

Anthony Dooley · Answer

I think it would be a mistake to refinance, if you can get refinanced without lying (mortgage fraud). I also doubt that your house would cash flow very much, even after refinancing, because you bought retail and your return on equity is not very good. Your interest rate is already low, so unless you can get a lower rate, it's not worth the hassle to refinance. It would be better to own it free and clear from a cash flow perspective. Playing with snakes eventually results in getting bit.

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

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

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