Home » Refinance to FHA
Can I refinance my FHA loan into a conventional loan so I can rent out my house and buy a condo?
Written By: admin on November 12, 2009
One Comment
I bought my house in 2007 with an FHA loan. I believe the terms of the loan state that the house must be my primary residence for 5 years before selling it or refinancing.
I want to buy a condo and relocate to New York in the next 3 years. I’m saving money to do that and working on other aspects of plotting (job, etc). I want to rent out my house, but due to the stipulations of the FHA loan, I can’t just go renting it out all willy nilly without getting in distress (with the IRS or with the state that gave me the money).
Is it wise to refinance the loan from an FHA loan to a conventional loan and then rent it out?
I did some research on this, and it seems that my PMI should be paid in full within the 5 year period, but I may get charged for the refinancing, and possibly a penalty from FHA.
Or should I just sell the house, buy another one with a conventional loan and rent that one out instead? Either way, I’m considering having two properties, a primary residence in NYC and a rental property in my current state.
Thanks for the help!
Are the terms the same for a CDA loan?
Related FHA Refinance Loan Posts
- Student Loan Default and FHA loan – please read all before answering as it is a little complicated. Thanks!?
- Pulling 2nd Mortgage on FHA Loan?
- Can I still refinance out of PMI on my 15yr FHA loan?
- Fha Refinancing Opportunity
- FHA Home Loans Are Your Low Down Payment Option!
- What Are The Advantages Of A Fha Home Loan?
- FHA streamline Loan – Refinance FHA Loans Easier And Quickly!
- What are the Differences Between an Fha Home Loan and a Conventional Loan?
- Take the proper Steps to Get Your FHA Mortgage today
- FHA Loan Mortgage Refinance – Use A FHA Home Loan To Refinance!
- Can i refinance now and get an FHA loan if i already payed all proparty tax for 2010?
- Is an FHA refinance good when i have a really good credit but the value of the house is low?
- Refinancing 6 months old FHA mortgage?
- If u have a 1st mrtg which going frm fixed to adj. and u have a maxd heloc, is it wise to conslidate?
- I heard there are exceptions to FHA loans which allow you to have 2 FHA loans? Is this true?
- FHA or conventional?
- Simultaneous sale and refinance or stay put?
- What are my refinance options now?
- Do ALL FHA loans require mortgage insurance?
- How often can u refinance?
- ****Conventional Loan To FHA Loan*****?
- What costs am I looking at?
- what happens if I foreclose on a FHA loan in Indiana?
- I have 2 houses? One is primary and second is a weekend home about 50 miles away. I want to refinance primary
- FHA Manufactured home loans Florida 97%w 580 FICO
- The Benefits Of An Fha And Va Home Loan:
- FHA loans Have NO Min Credit Score for Florida Homebuyers
- Is A Va Mortgage Refinance Or Fha Mortgage Refinance Right For You?
- Bad Credit Mortgage Florida, ((FHA down to 530 FICO))
- Florida FHA Mortgage Lender :: Florida FHA Loan :: Florida Home Loan ::
- FHA Mortgage Florida, (FHA makes it Eazy for Florida homebuyers)
- Florida First Time Home Buyer FHA Loans, 97% down to 530 FICO
- Why should Florida homebuyers choose an FHA mortgage?
- Florida FHA Mortgage Questions, Florida FHA Mortgage lender
- Fha Loans Have Key Advantages
- Find Approved Fha Mortgage Brokers
- Refinancing Your Home With an FHA Mortgage
- FHA mortgage, FHA Loan down to 530 FICO
- Fha Home Mortgage Purchase or Refinance Loan – Why You Might Consider Getting an Fha Loan
- What is an FHA Mortgage Loan?
- What is an Fha Home Loan?
- Supporting the American Dream: FHA housing Loans
- FHA Mortgage loans are Easy to qualify for for, 97% FHA Home loan
- With an FHA home loan anyone can own a Florida home
- FHA home loan Florida, FHA mortgage Florida,
- FHA Streamline Loan Requirements
- How to get an FHA Mortgage Loan, ((97% W 550 FICO))
- Steps To Refinance A Fha Mortgage Loan
- Refinance FHA Home Loan – Save Money With FHA Loan Refinancing!
- FHA Home Loan Refinance Can Be Quick And Easy!
Tags:
3 years,
cda,
conventional loan,
current state,
fha loan,
irs,
job,
pmi,
Refinance to FHA,
rental property,
saving money,
stipulations
Tags: 3 years, cda, conventional loan, current state, fha loan, irs, job, pmi, rental property, saving money, stipulations
Unless you have an FHA loan insured by Bond money, you only have to live in it for one year before it can become investment property. Unless you place a lot of money down or are paying extra, the mortgage insurance will not be paid in full in 5 years with the FHA loan. Your LTV has to get down to 78% for it to drop off. Five years is the minimum amount of time you must keep MIP on an FHA loan. If you refi to a Conventional loan you must live in it for one year as your primary residence. It is much cheaper to refi as a primary residence than investment property.
There should be no penalty for refinancing from an FHA loan. Just plot the closing so the payoff is received by the 1st day of the month or you will have to pay a full month’s worth of interest.
There are lots of headaches with rental property, especially if you are out of town. I would sell & use the equity as a downpayment.