Refinancing an FHA Loan

[Zander Dragony]

If I buy a property with an FHA loan but have someone co-signing in order to use their income on the application, would the person co-signing also have to occupy the property for the first year, or can I be the only occupant?

Also, if I did a cash out refi to another FHA loan a year later would I have to occupy the property for an additional year, or would I be able to then move out.

Thanks!

[Jerry Padilla]

@Zander Dragony

@Wayne Brooks

For FHA;

A SFR - A family member can be a co-signer and you still do the low down payment option.

A MFR - All co-signers regardless of the relationship requires 25% down payment.

* Also note - a MFR you can use 75% of the rental income from the other units to help qualify for the loan. This is a much better route to go with a low down payment option still of 3.5%.

FHA Cash Out;

No co-signer is allowed for FHA Cash Out. The required LTV is 85%. You will still have the higher mortgage insurance requirements compared to Conventional.

Conventional cash outs you will not have mortgage insurance requirements. For a SFR primary home - 80% for SFR and 75% for a MFR.

With either cash out option - you will have the requirement of living in the property for another year.