Refinance an FHA loan on a multi family for 5% down?

Refinance an FHA loan on a multi family for 5% down?

Rental Property Investor · Providence, RI · Member since 2016 · 67 posts · 10 votes
Hi Guys, I recently met someone who has 25 properties and I was telling him about my strategy to house back into a few multis. He basically told me once my 1 year FHA is up, as long as I bought the property right and had a little bit of wiggle room - I could refinance for 5% down. This getting out of my FHA loan and into another FHA loan rather cheaply. Is that feasible the 5% down, even if you don’t have a 20% LTV position built yet?
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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

     Or sure exactly what he means by “refinance with 5% down”.  You Could do that with a conventional loan, but it would be an owner occupied, where you are agreeing to live it for another year.

    Also, I’m pretty sure you can’t do another fha loan for 2 years, even though you may have met your one year occupancy.

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