Refinance Mortgages
Can you refinance a conventional mortgage to an FHA?
Someone told me that she wants to refinance his investment properties, but she has possibly less than 600 points. Her features are conventional Mortgages and ask about FHA refinancing.
FHA stands for Federal Housing Authority. This government agency is so lenders feel more confident to lend money for housing for people (mostly poor people) so they can own a home and live there. FHA is not for the rich investors. I can not see why she would have to refinance to FHA anyway. She probably will not get any better payment terms. If she has loans on her investment property that is subject to the "owner occupied" so it could be a breach of loan terms if she does not actually live there. Other credit companies usually require 30% or more as a deposit for investment properties. If she has less than 30% equity in her "investment properties "(Ie properties that she is not obsessed with himself), so she could get in trouble with mortgage companies to keep her loan. Tell her to be cautious and to forget about an FHA loan for real estate, she can not deal.