Can I refinance out of an fha before a year?

[RJ McCoy]

Hello BP, I am looking to buy a property using an FHA loan since I do not have much money to put down. IM looking to buy and rent out an undervalued property and force appreciate through sweat equity. My question is, if I were to buy a property for 70k with an fha loan ( 2.45k down) spend about 10k in repairs, increase its value to 100,000 would I be able to refinance out of the fha loan to a conventional loan without having to live in it for a year? Thanks, RJ

[Russell Brazil]

Yes, but you want to wait at least 6 months. If the loan is paid off in 6 months or under, the lender will get a big fine from Fannie Mae. Also you want to wait 6 months as if it is under that, the best comp any appraiser will use for your property is your own property and that sale price.