FHA loan questions with House Hacking!

[Joseph Gallant]

So I have an FHA loan on my house and I have put in a good amount of work into it and saved up some money. If I refinance my loan into a conventional loan, would I be able to buy another multi using FHA right after?

Side note: I have owned my current house for 8 months that is in FHA.

Tried researching online but just checking for clarification!

Be humble. Be hungry.

Joe

[David Faulkner]

Yes. You should consider refinancing your property out of FHA while you live there if you can lower your rate and payments with a conventional fixed rate (I like 30 year) mortgage. One of the reasons I don't care for FHA is because the PMI is essentially "built-in" to the rate, so the only way to get out of it is to refinance out of it. On the other hand, if you get a low down payment conventional mortgage with PMI on your next property (house hacking as a primary residence), then if/when you build up equity, you can appraise out of the PMI and keep the same fixed rate terms without needing to refinance, but if rates drop further you can still refinance it. Much better way to go IMO. Plus, inspections on conventional mortgages are much less stringent, allowing you to get more of a fixer where you can force some appreciation and earn some sweat equity. A good mortgage broker can walk you through the ins and outs, pros and cons, and options of these various scenarios.