Can I refinance my FHA mortgage to a Conventional mortgage?

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I bought my home a year ago, and would like to refinance and take out the equity to pay off bills and make some much needed repairs around the house. With an FHA mortgage you can only cash out up to 85% of the equity of your home. I would like to know if its possible to refinance my FHA loan to a conventional loan and to cash out the full value of my home? I have had a full time job for over 2 years and have good credit and also a cosigner if needed. Thanks for your help

We are trying to do a cash out refinance and have already done the appraisal of our house. We are looking to do a 95% cash-out refinance and our mortgage broker suggested an FHA loan. It seems to good to be true. What are the downsides?

  1. Reply
    April 29, 2011 at 9:41 pm

    No. No lender will give you a conventional loan for 100% of LTV.

  2. Reply
    Lisa L
    April 29, 2011 at 9:50 pm

    You can refi from FHA to Conventional but you won’t get any more cash out. No PMI company that I know of is going above 85% LTV.

  3. Reply
    the kid
    April 29, 2011 at 9:53 pm

    No lender will do 100% LTV.

  4. Reply
    April 29, 2011 at 10:28 pm

    The down side is that your closing costs tend to be higher. You have to pay 1 1/2 points in upfront PMI (often financed in the body of the loan) and regardless of how much your property increases in value, you have to pay your PMI for at least 5 years.

  5. Reply
    Expert Realtor
    April 29, 2011 at 10:36 pm

    If you have to refinance cash-out to go from a conventional to an FHA…I say don’t do it.

    That is a bad move overall…and MIP is very difficult to get rid of.

  6. Reply
    Tony D
    April 29, 2011 at 11:22 pm

    If you need the cash out, it’s likely your only option. Consider it carefully, if it makes sense for you, go for it.

  7. Reply
    April 29, 2011 at 11:33 pm

    I can’t even begin to tell you how I totally understand your situation! I found a someone through here and he refinanced my moms house without all the hype and drama you have been hearing everywhere. Everyone jumps on the ban wagon and gives up, but on the real, people are still getting financed even with their bad credit. You can contact my lo mike@afbankloans. com , it’s not as bad as you think. Remember eggs where not good for you? Be smart.

  8. Reply
    Levi L
    April 30, 2011 at 12:26 am
  9. Reply
    April 30, 2011 at 12:51 am

    I used “Credit Solution” to settle my loans.They managed to reduce my loans up to 58% .It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:

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