203k Loans and refinancing

[Austin Moore]

I have a question regarding 203K loans and the refinancing process: the idea of financing a property like this is extremely appealing to avoid having to shoulder the entire cost of a remodel. My question for anybody who has used this process before is how does this affect your appraisal following a remodel? If the bank has more "skin in the game" and has taken on more risk for repair costs, which add equity to the home, do they ultimately provide less than the typical 70-80% LTV ratio on the new appraised value on the home when you are looking to refinance? I'm still an extreme rookie here so apologies if this is a simple question or if it doesnt quite make sense, but I think using this type of financing is really beneficial barring any extreme changes it can make to the refinancing process. Thank you all in advance!

[Matthew Porcaro]

No affect. 

When I did my 203k, I bought the property for $270,000, and put $80,000 into it on the rehab. Total 203k loan was $350,000. 

8 months later after the rehab was finally finished, I got a new appraiser to come in and it appraised for $480,000. That was more than enough for me to refinance into a conventional loan and get rid of the mortgage insurance. 

Typically, you would be going to another bank anyway. They don't care what loan you're in, just how much equity you have in the property.