Posted on: 28th Jan, 2013 02:06 am
hi there… we bought a house 13 months ago, and because we didn't have the down payment, we had to go the fha way. the homes in our area have really increased in value over the past year and i think we now have 20% equity. we'd like to refinance out of the fha into a conventional loan. assuming that we have 20% equity, i am wondering how easy it is to refinance out of fha. we have high scores (780), negligible debt (right now, total dti including mortgage + pmi is 28%, so it would be even better without pmi.). will it be possible to get a conventional loan?
Hi Stephanie,
If you have 20% equity in your property, then you can contact the local banks and apply for a conventional mortgage. If you satisfy all the required criteria of the lender, you will be able to get a normal conventional loan.
Thanks,
Jerry
If you have 20% equity in your property, then you can contact the local banks and apply for a conventional mortgage. If you satisfy all the required criteria of the lender, you will be able to get a normal conventional loan.
Thanks,
Jerry
It is possible to convert an FHA loan into a conventional one. You you have more than 20% equity in your home, you can try to do that. However, you have to pass other criteria too.
Hi Stephanie2,
Yes if you have 20% equity then you can apply for a conventional loan. Look like your DTI and your credit meet the requirement. Most important, will the home appraisal for what you need. Have you checked comps in your neighborhood. Looks like this loan would save you a lot of money, one with a lower interest rate, and two, with no PMI. Plus the interest you pay over the life of the loan will be much less, assuming you have a higher rate now, then the current market rates. What state are you located in?
Yes if you have 20% equity then you can apply for a conventional loan. Look like your DTI and your credit meet the requirement. Most important, will the home appraisal for what you need. Have you checked comps in your neighborhood. Looks like this loan would save you a lot of money, one with a lower interest rate, and two, with no PMI. Plus the interest you pay over the life of the loan will be much less, assuming you have a higher rate now, then the current market rates. What state are you located in?
sounds like you should apply.
