Is it possible to refinance into a FHA loan?

[David Collins]

Greetings, everyone! I thought of a new strategy idea today that I wanted to present to the biggerpockets community and see if anybody knows if it is possible or if they have done it themselves. So to start, if I were to purchase a 3-4 unit property that needed work with a hard money loan of about 70% ARV, and then purchased and renovated the property, would it be possible to refinance out of the hard money loan and into a FHA loan if i planned to live in a unit? That way, the FHA loan would be for 96.5% of the homes value, and the hard money loan would only be for 70% arv plus points and interest. This would technically leave a good chunk of change left over after paying the hard money lender.