Where did my Equity go during my FHA REFI!!

[Derek Hebert]

I currently have a fha loan on a two-family. I plan on refi to drop the fha loan and as well as PMI. The LTV ($162,000-$235,000) = $73,000. Since it is a multi I'm told I'm only able to tAke 75% of the LTV ($73,000x.75) = $54,750. My question going forward is where does that remaining $54,750 go? Is the equity not great enough to do a cash out refi. I was hoping to use that money to continue on with my investing. It seems as though im missing something. Please if im incorrect or missing something regarding this process let me know!!

[Bill B.]

Your “value” in your example is $235k.

A 75% loan to value would be a loan for $176,250. 

Since your current loan is for $162,000 (you’re currently at 69% ltv)

You only have access to $14k with a cash out refi. 

If your lender didn’t know or could explain this, time to move on.