with the va loan or fha loan can i do this

Milwaukee , WI · Member since 2017 · 58 posts · 10 votes

Say i get a property with one of them. Live in it for alittle while. Could i refinance the loan into a normal morgage loan with less then 20 percent equity? To speed the process up of me renting it out. I am merly curious.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
You do not need to change it over to a conventional loan to rent it out. You can keep the VA/FHA loan and do so. When you get an owner occupied loan, you sign an affidavit that you intend to live in the property for at least a year. After that you are free to turn it into a rental, or even before if our circumstances changed and have to turn it into a rental
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Jeff Brower
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
9y
A 'normal' mortgage loan will require 20% down so being able to refinance before one year would require that you either a) buy with equity built into the deal, or b) pay down the loan to get the equity build up. In case b, why not just get a conventional loan from the get-go and save the hassle and cost of refinancing?
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