FHA loans (househacking)

[Andrew Solberg]

I want to get a multi-family house down the road, and live in one side and rent the other(s). I know some of the basics about FHA loans. I do not know much about the refinance process. When you do refinance, does the mortgage insurance go away? Or is that something that stays with you until the loan is paid off? Also, how long until you are able to refinance?

[Jeff Brower]

This is why waiting for good deals and putting sweat equity into the property is beneficial. If you can find a great deal where you gain instant equity via buying below appraisal value, you are already ahead. A normal amortization schedule will take quite some time to chop down on 20% equity normally required if you buy exactly at market value. If you can buy with some equity built in, and put additional sweat equity into rehabbing the place, then you can get your equity position to a much better spot quickly in order to refinance out and rid yourself of the PMI.