How soon can you refinance an FHA loan?

Question

I bought a 4plex, and I bought it at 10% less than the appraised value, so essentially I have 90 LTV. I bought it using an FHA loan and have to move in within 60 days.

How soon can I refinance? It's at 90 LTV so I'm wondering if there are some banks that allow refinancing, where I wouldn't have to occupy it after refinancing. Should I wait 6 months to a year, or should I just do it sooner?

It doesn't need any rehabbing or anything like that. I just want to get another FHA loan to get another 4plex later on.

Andrew Postell · Answer

@Ellie Narie 2 elements to your question here:  Time and LTV requirements.

1. Time on Title - you do not have to be on title for any amount of time to refinance an FHA loan.  You may refinance right away if you and the property qualify.

2. Loan to Value - If you are trying to refinance OUT of an FHA loan into a Conventional Loan you will likely need 25% equity in the property to do so.  There is one loan where you can leave 5% down to refinance....but I'm assuming you don't qualify for that loan....otherwise your lender would have had you close with that 5% down loan when you purchased.  So if that's the case, then you need to make sure to have 25% equity, or 75% "Loan to Value" to refinance with a conventional loan.  Oh, and your rate and payment will be higher this route as well.

Hope this helps in some way.