What was your "next step" after first FHA house hack?

Question

Do you need to wait until you have 20% equity to refinance into an investment loan? Or can you refinance right away after you live there for a year, without having that 20% equity?

How do you proceed to do another house hack after a year if you don't have 20% equity?

Ellie Narie · Answer

You only have to live in it for a year. But you can't get a second FHA loan if you already have one, that's why I am wondering what are the options to refinance it.

Jonathon N. · Answer

I would deff recommend refinancing out of that FHA loan because if they find out you are no longer living in that property and are using it as a rental a due clause will be called and the entire amount of your mortgage becomes due!!! Be careful and good luck! I know there are places out there that offer only 15% down for an investment mortgage.

Victor So · Answer

@Ellie Narie

Hey!

Look into a streamline refinance! That’s what I did to refinance out into a conventional loan even though I didn’t have 20% equity (I think...don’t quote me on it though). Truthfully, I don’t remember the logistics but it may be worth looking into!

Victor

Michael Wegner · Answer

@Ellie Narie

Great question! Not trying to Hi-jack your thread but I also would love to hear what the next step would be? I also used an FHA loan on my current 4plex and I am hoping to invest in another 4 plex in the near future but do not want to put 20% down if I can help it. Thanks for asking Ellie and thanks to anyone for any advice for us!

Ellie Narie · Answer

2-4 unit property. What's the best next step to get another 4plex without paying down the 20% equity?

Andrew Postell · Answer

@Ellie Narie are you talking about a Single Family Home or a 2-4 unit property?  The answer is different depending on what property type.  Meaning, is the property you are house hacking single family?  And will the next property be a single family?

Also, was there a reason why you needed to refinance?  What about just leaving the FHA loan in place?