Need Help With Refinace Out Of FHA!

lasal2000 profile photo

Alright so here is my story. I purchased an property with the FHA 203k loan a year ago. Being that was my very first property I kinda overpaid for it. I rented the property out (shhhh!) with a $200 positive cashflow. Unfounately, now I really want to buy a property to actually live in. My credit score is a little low for a conventional mortgage (650 middle score).



So I was thinking that I could buy this property with a hard money loan and do a straight (no cash-out) refiance out of the hard money.



My question is, are there any more options? Also, should i have any problems refinancing with my credit score? Ahh yeah the property will have roughly $50,000 equity and I have about $5,000 in pocket.

Comments(6)

  • cjmazur6th August, 2009

    if the property has positive cash-flow, do you want to keep the property or sell it?

    as I recall fha and fannie go down to a fico of 640, so you should be in just fine shape to get OO financing.

  • lasal20007th August, 2009

    I would like to sell the FHA cash flow property or refinance the FHA loan into a convetional loan so that I can buy another FHA property for me and my family to actually live in. With my credit score, I am not able to get a conventional mortgage and I am only allowed to have 1 FHA at a time.

  • NewKidInTown38th August, 2009

    The FHA rule used to be (1) only one loan at a time, and, (2) no more than one loan in a 24 month period.

    You also need to check how long you have to wait before you can get another FHA loan.

  • cjmazur9th August, 2009

    If you sell the property (how about sell to close relative (wife, son, entity) or an LLC you form since FHA are assumable) the loan would be gone as with the refi.

    You need to confirm that with what you have to pay for the NOO loan, the property would still be positive cash flow.

    If this is the cash would you look at hard money? or were you think worse case?

  • NC_Yank16th August, 2009

    Sorry guys, I have been busy and have not been on here as much.

    2x4 are indeed common.......they usually are braced back toward a middle load bearing wall........as one of the other members stated, you mostly have to watch out for multiple layers of roofing applied to same. On such roofs I would never put more than 1 layer. What happens more often than not is that there is improper ventilation which results in 1x6 boards separating from the rafters which creates moisture intrusion issues. This is also why roofs should be stripped to the sheathing and any loose board properly fastened.

    Obviously if there rafters are sacking then such need to be addressed.

    I have inspected hundreds of homes where 2x4 were utilized......again, the main issues is venting and insulation.

    As for as code, depending on the span your covering, a 2x6 may be fine but typically its not needed........address venting and insulation issues if there are not signs of structural failure.

    Hope that helps guys...

    NC_Yank

  • lacashman22nd August, 2009

    One thing I learned early one: Side and back yards spend very few $$$. There isa reason developers spend almost nothing on the back yard.

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