Financing in Washington>Question Details

Xi, Home Owner in Washington, DC

Can I refi from a FHA to a conventional on a affordable dwelling that has resale limitations using the appraised value? Appraised $380k, my loan $288k

Asked by Xi, Washington, DC Thu Dec 2, 2010

I bought an affordable dwelling unit in Feb 2010, and I was wondering if it's possible to refinance to a conventional loan so I can get rid of my monthly mi. The original appraisal came in at $380k, right now my loan is $288k. The property is deed restricted so there's resale limitations. Has anyone done anything like this?

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5
I know Manna Mortgage is very experienced with financing for ADUs. You may want to reach out to them to see about refinancing options. Here's their website: http://www.mannamortgage.org/

I don't think ADU's have and restrictions on refinancing, and with interest rates at all time lows, it's likely that you could really lower your monthly payment. You're definitely smart to research your options. Good luck!
1 vote Thank Flag Link Wed Dec 8, 2010
Xi, since you just bought your home just 10 months ago it's pretty early to consider a refinance. If your property appraises for the same or more you do have enough equity to refinance but you need to consider other factors.
Mainly, the cost to refinance and how long it would take for the savings to offset the cost.

You need to speak with a lender that can show you your options in writing and explain to you what the benefits and costs are.

Here is some more information on refinancing: http://www.elliottoliva.com/WhentoRefinance

Here is some more information on Mortgage Insurance: http://www.elliottoliva.com/FHAInsurancevsPMI

For more details or questions please feel free to contact me at your convenience. Thank you.
0 votes Thank Flag Link Tue Dec 14, 2010
Xi,

You should call your current lender and/or reference your mortgage paperwork to determine if this can be done. Just because you have 20% equity does not mean you can remove the PMI. Some mortgages have certain time frames before you can refinance or get rid of your PMI. If you need help determining this, you can call the loan officer that helped you with your mortgage (if you liked him/her) or you can contact someone new and I'm sure they'd help you to find the answer.

Felix
0 votes Thank Flag Link Sun Dec 5, 2010
Resale limitations? Like what?
0 votes Thank Flag Link Thu Dec 2, 2010
I'd give Harsh Patel, with Prosperity Mortgage, a call (703-975-6281). He can explain your options!
0 votes Thank Flag Link Thu Dec 2, 2010
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