Home Buying in Chicago>Question Details

2thepoint, Home Buyer in Chicago, IL

Home equity and refinance

Asked by 2thepoint, Chicago, IL Fri Nov 9, 2012

I just purchased a two flat, I would like to refinance out of an FHA loan to rent out both units and purchase a condo for my family. Is it possible that I could have enough equity to refinance in such a short time (1-2 years)? For example, Appraisal was for $150K purchase price was $130K. Thanks in advance.

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Speak with an expert in mortgage financing. I would recommend Tracy Campagna at Guaranteed Rate. Call her anytime: P: 773.383.1405 tracy@guaranteedrate.com. She can walk you through all of your options. Good luck!

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0 votes Thank Flag Link Fri Nov 9, 2012
When trying to refinance a home less than a year after purchasing, the lesser of appraised value or purchase price will be used to determine the value.
1 vote Thank Flag Link Fri Nov 9, 2012
Rates are very low now, it is a great time to refinance. If it will appraise out, then it is a win - win situation. Have your agent pull up recent sales in the area to get an idea of current value.

All the best,

Ivan Sagel
0 votes Thank Flag Link Tue Nov 13, 2012
you need to discuss it with a reputable area lender, area lender! And at the same time you should get a detailed market evaluation of your property, it depends on upgrades, size, location of your property,
but during the last two years I doubt that there would have been a lot of value added... Just get details
and facts in writing, so that you will be able to realize whether it is possible or not.
Good luck to you

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0 votes Thank Flag Link Sun Nov 11, 2012
It depends on where you bought it, but at that price probably yes, but ask a couple of agents to do a market analysis to see what the vale might be. Did you buy the 2 flat without an agent? Ask the agent.
I assume you just want to get out of the fha loan so you can get another fha loan for the nw property. If you hope to pull out some $$$ fromt he 2 flat in oprder to use for a new purchase I dought that will work.
0 votes Thank Flag Link Sat Nov 10, 2012
FHA has strict guidelines. My guess is you were informed when you purchased what these were. However you may want to go back to your initial mortgage lender and see what the current standards are now for what you want to do in regards to renting out the unit and then refinancing.

There are some good recommendations here for lenders, but go to the source of whom you worked with initially. Why recreate the wheel so to speak.

Laura Meier
212 E. Ohio Street
Chicago IL 60611
email: lmeier@atproperties.com
cell: 312-282-2122
See my listings at: http://www.atproperties.com/laurameier
0 votes Thank Flag Link Fri Nov 9, 2012
Id call your lender on this one.
0 votes Thank Flag Link Fri Nov 9, 2012
Yes, you can definitely refinance. When did you purchase the property?

Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing


Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

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0 votes Thank Flag Link Fri Nov 9, 2012
I believe that you should talk to a good quality mortgage person. Usually, you need to own the property for more than one year to get the larger of the two numbers( the new appraised value) Either way, talking to your mortgage professional is the correct way to go.
0 votes Thank Flag Link Fri Nov 9, 2012
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