All Forum Posts by: Alejandra Tapia

@Dave Spooner

@Andrew Postell

Thank you both for your responses and time! They have helped!

@Charity Skore Thank you, Charity! Much appreciated!

@Andrew Postell Got it. Yes, thank you for clarifying!

Thanks, Andrew! So 5% equity needed for a SFR and 15% equity needed for a duplex, in order to refinance into a conventional loan, IF I intend to use to property (whether a SFR or a duplex) as a primary home, correct?

When you say, "the lender will ask 'do you intend to occupy the property as your primary home'...and that will start the 12 month intent again", you're referring to refinancing it into an FHA loan again (from a 203k loan)?

So if I do not intend to use the property as primary residence, I would need to have 15% equity in order to refinance, regardless of whether it is a SFR or a duplex?

@Paul Welden I hear you. That makes total sense. I appreciate your input!

If I use an FHA 203k loan to purchase a home, I'm aware that I would have to occupy the home for a year prior to renting it out (generally speaking). However, I've read that a 203k loan can be refinanced after 6 months (into a conventional loan), at which point the appraised value of the home would be used in the refinance. My question is: Once the 203k loan is refinanced into a conventional loan, would that pretty much eliminate the 1yr-minimum requirement for an owner occupant?

Also, please correct me if I’m wrong on any other information I shared above.

-Alex

@Greg O'Brien Definitely best practice. I appreciate your input!

@Aaron Barber Wow, that is really unfortunate! So best case scenario is if the bank has already approved the short sale, correct? I saw one of these on the MLS that stated the property was available to close immediately, so I'm assuming that's already half the hurdle?

@Sean McDonnell Thank you Sean! This really helps. I appreciate your response!

@Michael Plaks Got it. Thanks for the update! :)