Primary Vs Investment Loan for a Refinance in Los Angeles

[Alejandro Garcia]

Hi!

I am in the middle of a refinance where I was planning to refinance from my FHA loan to a conventional loan on my Los Angeles duplex! Over the year since I have purchased the property I have managed to get the appraised value from $570K to 775K, a lot due to the normal market but a lot of sweat equity too. My desire was to refinance out of the FHA loan into a conventional primary loan and then move on to the next property using the FHA loan again but was advised by a 3rd party that it might be hard to get another property if I list my current one as my primary residence. If I use an investor loan the interest rate would go up and I will most likely have to keep 25% down which affects how much I can pull out.

So I am currently stuck on what to do, stick to the conventional primary loan or get it as an investment loan? I was hoping to get another property by the end of this year and it would be within 20 mile radius of my current property. Any thoughts or ideas would be much appreciated.

Thanks in advance!