FHA question - how to finance second deal
I own and occupy a 2-family house in MA which I purchased and financed with an FHA loan in October of 2013. This was my first of hopefully many real estate acquisitions.
Keeping the details short - the apartment I live in has 3 bedrooms, I occupy only one and rent out the other two. I see a huge opportunity to move out and rent the entire place, netting a $500+ cash flow monthly (after PITI), and move into another multi/condo/SFH.
My question is: what are my options, regarding the FHA financing on this property. It's my only property at the moment, and I'd love to find a way to refi out of FHA or structure a deal in which buying another property is possible.
My financial details: $32k in savings, steady income of $45k+ per year, mortgage on property 1 of ~ $1900 (including PMI, taxes, insurance). The rental income more than pays for the property at $2,400/month (fully rented).
Do I have any viable options? Or am I severely limited due to the FHA restrictions? Any thoughts, ideas, comments, or advice is appreciated.
Most Popular Reply
If you got great terms on your FHA duplex, there is no point in refinancing this early, unless you bought it at a 30%+ discount.
Financing your next deal may be more difficult to qualify if you plan to use any sort of Fannie/Freddie financing. Consult with a local mortgage banker for underwriting guidelines for your situation ( ie, landlord experience, reserves, debt to income).
Start to develop relationships with local bankers as well, who may be more flexible.