Refinance FHA into conventional

[Angel Garibay]

I own my house on an FHA loan and I am looking to sell it in the next month or so. The more I get to conversing with people around the neighborhood I find out that a lot are military families and a lot of them are actually renting their residence. I live about 20 minutes outside of an Air Force base and it is on a slow burning path of progress.

So as the timeline gets closer to us actually putting the house on the market the idea of keeping it as a rental is becoming more intriguing. For the numbers to work for the house to be a cash flow positive I would need to refinance into a conventional loan so I could drop the PMI off of my monthly mortgage payment. With doing that I would need be able to pull out some sort of cash to move my family into another house.

What I am wondering is if I would be able to pull out cash or at least a HELOC after refinancing into a conventional. I owe 280 on the property and after some appreciation and renovations the property is now worth 365.

With that spread would I be able to pull out cash after the refinance to continue my journey? And if that is possible what would I need to do to be able to do that? Could the refi be a cash out refi or would I be able to pull out a HELOC after refi?