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Can i refi and use the funds for a new down payment?

I have an FHA mortgage so I'm thinking FHa cashout. I'm around the 60% equity mark and do have some savings, simply not enough to cover another full down payment. the new property would be for a rental and my fico is 722 according to transunion. What do u think? by andusky78426400 from Granite Falls, Washington. Dec 11th 2014 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes.. you can do a cash refi, but don't use FHA for that.. FHA requires upfront and annual/monthly MI regardless of your loan to value.. If you use conventional for the cash out, and you keep your loan to value at or below 80%, you wont have to pay MI.. and you can use those funds for what ever you wish.. including a down payment on an investment property.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Dec 11th 2014
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,317 contributions

If an extra 20% of the value of your home will work, use conventional, as William stated.

Dec 11th 2014
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

Yes you can.

Dec 11th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,246 contributions

I agree with William too, conventional financing is much preferable (max probably of 80% LTV) but remember if you are going to rent the next property you will need 20% downpayment on it, reserves and the seller can only pay 2% toward closing costs.

Dec 11th 2014
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Robert Hardy (rob.hardy@apmortgage.com)
#93 ranked lender in Washington - 13 contributions

Yes you can,, But I suggest refinancing into a conventional loan program. You may not know but you are paying MI(Mortgage Insurance) on your current FHA loan. Also.. you would need 20% down on Investment and or Rental Property purchases. I'm sure you'll have more questions. Guess What? I've got answers.Give me a call! Robert A. Hardy NMLS# 1069254 Central Banc Mortgage #55244Office 425.533.0041 Cell# 206.973.6394 Best rates in Washington State!!

Dec 11th 2014
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,827 contributions

You are allowed to use the proceeds from a refinance for any legal purpose. There is no reason for you to stay in the FHA loan product mix. Your new conventional loan will allow you to borrow up to 80% of the appraised value with no mortgage insurance. A new FHA loan will require Mortgage insurance. The up-front premium would be 1.75% of the loan amount, plus the monthly premium. On a $200,000 loan, that would be an up-front cost of $3,500, plus an additional $215 per month. And FHA loans now require monthly mortgage insurance premiums for the life of the loan... Ouch. With your scores, you should be thinking Conventional;. I'm licensed in Washington and would be happy to help. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in Arizona (AZLO0911876 / AZBK0902429), Washington (WALO40586 / WACL3087) and California (CADOC40586 / CAFLL6036566). We are licensed by the CA-DBO under the CFLL and CRMLA. Loans made or arranged pursuant to CFLL or CRMLA license. ~ www.LoansA2z.com ~ 888-889-9950

Dec 12th 2014
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