Refinancing FHA Loans

[Chris Henry]

I used an FHA loan to buy a house hack in October 2021. This was a value add property and considering appreciation over the last year, I should have some equity in the property. I'd like to refinance and use the FHA loan again to buy a property at the end of the year. Can I refinance into a conventional 90% LTV or is this unheard of? As it is, this property has an NOI of $500 while I occupy one of the units. I'm estimating around $1900/mo NOI when I move out. Any advice for me? Thanks!

[Chris Henry]

Quote from @Andrew Postell:

@Chris Henry so even if you DO NOT have an FHA loan on your current home....it's the NEW FHA loan that would require 25% equity in your vacating property. So the loan type on your current home does not matter....just the fact that you are getting a NEW FHA loan would. I hope that makes sense how I am describing it.

And as mentioned above - you should be planning on a higher rate than 5%-6%.  Again, get prequalified.  You might be surprised by a few things right now.

Thank you for explaining! This is definitely something that I was not aware of when trying to get a second FHA. I'll have to reconsider my next move then for sure.