refi my home before I turn it to a rental

[Matt Williams]

HI BP people I'm trying to figure out if I need to refi my home before I move out and turn it to a rental.My plan is to refi my FHA to conv.and then buy another home with FHA financing with 3.5% down.Is this doable

[Kirill Chervets]

I think it really depends on what you want to accomplish. I purchased my first home with an FHA loan, lived there for two years and then refied to a conventional and bought another home with an FHA loan. I was able to get out of paying PMI on my first FHA loan by refinancing to a conventional loan and am now in the second year of living in the second home and do pay PMI until I refinance. My first purchase is cash flowing well enough along with me being able to save that I will not need to buy anymore properties and keep moving to meet FHA requirements. Your lender should easily help you out with this and you could even do a refi and purchase of the new fha loan at the same time if I remember correctly.