Refinance out of FHA

[Sean Ebert]

Hello All,

I have a question about refinancing out of my FHA loan. I bought my first owner occupied duplex over the summer of 2015 in Manchester, NH. I did minor upgrades in one of the units (flooring) and plan to do some more basic updating. I doubt the minor updates have raised the value enough to give me 80% equity. My question is, is there anyway to refinance out of my FHA loan with not having enough equity into it. I want to get out of the FHA loan to use it to buy another owner occupied property with it after I've been here for one year. I would appreciate any recommendations or advice.

Thanks!

[Josh Mitchell]

@Sean Ebert you can refinance into a conventional loan with 5% equity, but it will come with PMI attached to the loan much like you have right now with the FHA (maybe a little cheaper though).... This will essentially free up the use of another FHA loan for you however, but I would run numbers to see if it makes sense to do so. You won't be able to refinance the property and pull any cash out if you only have the 5% equity in it, if that's what your plan was.