How quickly can you refinance (with new appraisal) after a property purchase?

[Sophie Mia]

Hi everyone,

Let's say I want to buy a property with the 3.5% down payment FHA program which would leave me with a large amount of mortgage insurance to pay every month.

If I buy the house under market value (let's assume 75% of value), how difficult would it be to refinance the property a few months after the purchase using the equity in the house? I would go for a 25% conventional loan without PMI.

How many months do I need to wait for a bank to be willing to do a new appraisal and use that appraisal for the refinance (vs. the amount I paid).

I understand that there would be additional closing costs etc but even with those...putting only 3.5% down and then not paying PMI after a few months would be quite a steal.

Has anyone done this before? Have you encountered any issues?

Thank you!

[James Wise]

Never tried anything like that but with cash out refinance most banks require 12 months for a new appraisal. Some will do it at 6.