Originally posted by @Andrew Postell:
@Alejandra Tapia just to reinforce what was said above, and to answer your question, if you have 5% equity in a single family home you can refinance into a conventional loan. This might be beneficial even if you live in the property if it reduces your PMI...or if you have more equity than 5%. If it's a duplex, then you would need 15% equity to refinance.
Now, when you refinance the lender will ask "do you intend to occupy the property as your primary home"...and that will start the 12 month intent again. If you are NOT occupying the property then you would need to refinance the property as an investment property, which would require 15% equity as a single family home. I hope this all makes sense. Thanks!
Thanks, Andrew! So 5% equity needed for a SFR and 15% equity needed for a duplex, in order to refinance into a conventional loan, IF I intend to use to property (whether a SFR or a duplex) as a primary home, correct?
When you say, "the lender will ask 'do you intend to occupy the property as your primary home'...and that will start the 12 month intent again", you're referring to refinancing it into an FHA loan again (from a 203k loan)?
So if I do not intend to use the property as primary residence, I would need to have 15% equity in order to refinance, regardless of whether it is a SFR or a duplex?
