FHA 203k loan refinanced to conventional? BRRR...?

[Blake Harris]

After researching the 203k loan in more depth, I now have discovered that you potentially cannot do traditional cash-out refinance. First, is that true? Second, how would you approach the refinance to complete the BRRR method?

[Matthew Porcaro]

Originally posted by @Blake Harris:

After researching the 203k loan in more depth, I now have discovered that you potentially cannot do traditional cash-out refinance. First, is that true? Second, how would you approach the refinance to complete the BRRR method?

That is true that you can't do a cash out refinance from an FHA. You can, however, get a HELOC that will allow you to effectively tap into the same amount of equity, just in the form of a credit line rather than a lump sum sent to you.

I actually preferred using a HELOC because I can tap into it only when I need it. I don't want to always be paying for money I may not be using (which is what you get if you do a cash out refi)