Investor · NH · Member since 2020 · 175 posts · 75 votes
Can you refinance an FHA loan without an 80% LTV? I know that is the general rule of thumb, but I am wondering if there are some exceptions. I know there are conventional loans where you can have a low down payment (around 5% I believe) with good credit. Is the case the same with refinancing?
The situation I am thinking about is house hacking for a second time. Since it is rare that you can have multiple FHA loans at one time, you would need to refinance the first one or get a conventional loan for the second one. And if you haven't built up enough equity or can pay a chunk of your mortgage, then it seems like you are kind of stuck.
Hey @Cole Britting yes it is possible to do that! However, I bet it will not be all that easy with most lenders. I am planning on doing this for my first purchase, currently under contract with FHA financing and we are planning on refinancing in 6 months to the Home Possible program with a conventional loan.
I am working with @Zack Karp who will be able to explain it much better than I can. Here is the link to his page since I was not able to @him here.