Fha cash out refinance multiple times in a year

[Kalib Williams]

Hello, I am looking to purchase an 4plex and use a fha 203k loan to renovate. After the renovation I would like to do a cash out refi into an 80/20 conventional. After this is done can I apply for another fha loan and repeat. Question: since I have refinanced out of the fha loan, do I still have to owner occupy for atleast 1 year? Question 2: can I legally obtain another fha loan since I would currently not have one after the cash out refi.

Thanks

[Zack Karp]

@Kalib Williams in theory, yes you can do this, but not at 80%.

For the exit strategy from the 203K loan on a 4-unit, you have 2 options using Conventional financing:

1. Finance as a primary residence, 75% max LTV as a rate/term refi or as a cash out refi, and with the new loan you would be stating you intend to occupy for 1 year starting with this new mortgage.

2. Finance as an investment property, 75% max LTV as a rate/term refi or 70% max LTV as a cash out refi, slightly higher rates than the primary loan, and no requirement to occupy.

Once you pay off the FHA loan with the Conventional refi, you now have your FHA eligibility back to rinse and repeat, there is no waiting period to use FHA again.

But the challenge is having 25% or 30% equity after the 203K.  If you can pull that off, then this is a great strategy.  Make sure you know ALL your numbers before starting so you don't get stuck.

Best of luck!