All Forum Posts by: Corey Blane

If you're only wanting to refinance, not take cash-out, the maximum LTV is 75% for an investment property duplex.

So it would appear that unless the home appraises for $210,000 or less your loan to value should be in line to remove the PMI and free up your FHA eligibility for a CA purchase.

Hi Matthew,

If the home appraises for $223,000 and you owe $158,000 (70.58% loan to value ratio) you can certainly refinance into a conventional and remove PMI.

However, since both units are rented this would be classified as an investment property in which case your rate will probably be 4.00% to 4.250% on a 30yr fixed depending on FICO credit score.

The maximum loan to value for a cash-out transaction (investment property, duplex) is 70%.

Based on the information you've provided it doesn't appear the value is high enough for the property to be eligible for a cash-out transaction but you can still remove PMI.

If you want to send me a PM I can run a complete analysis to see if removing the PMI will offset the slightly higher interest rate.

I'm also licensed in CA so if you're looking to purchase a property I can help with that transaction as well.

That's a great accomplishment Lisa! 

Do you have a Mortgage Loan Originator that you'll be working with? I'd love the opportunity to sit down with you and see how I can help fill your clients lending needs.

Please click my bio and contact me if you're interested!

Hi Amy,

When did you purchase the properties (month/year)?

Hi Dhru,

I might be able to answer that for you. An FHA loan needs to be your primary residence. So if you do want to purchase a home with FHA financing, that's smaller than your current residence, you'll need a good explanation that makes sense for downsizing. The explanation can take many forms. A few that I've seen pass underwriting include downsizing because of a divorce and moving to a new area that has a better school district for your children.

If your reason for downsizing doesn't do the trick on it's own, having a signed lease (along with accompanying security deposit and last months rent) for your departure residence will many times get you over the hump. You'll need to show that both the security deposit as well as the last months rent checks were deposited into your bank account. This will help solidify that you're serious about the lease and it's not just a straw lease to qualify for primary residence financing.