FHA to Conventional

[Crosby Afolabi]

Hi everyone,

I'm thinking of refinancing from FHA to a conventional loan. If I do this, would I be able to purchase another property later on and qualify for another FHA loan?

Thanks.

[Matt Devincenzo]

Yes you could. But I'd suggest you see if you would qualify for the next home as a conventional loan as well. FHA is great in specific instances, but conventional offers many of the same low down payment options as well and their 'fee' is lower. FHA is really useful if maybe your credit is slightly below conventional guidelines, or maybe your DTI is just outside the conventional range. But I'm guessing that is less likely the case since you've purchased once and this purchase should help both your credit and your DTI...and you already are considering a refi into conventional which means you qualify for it.

I think you hear so much about FHA because it's criteria are a little broader, but for most that are able to buy a similarly low down payment conventional loan will always be a better option.