Just to give you a rough idea of the minimum value you need from your property, if your current mortgage payoff amount is $290,000, then your property must be worth a bare minimum of $298,970 to be able to pay off your current mortgage. This does not take into consideration the closing costs and upfront mortgage insurance that would need to be added into the new mortgage amount if you do not want to pay out of pocket. But at least this gives you an idea of where you need to be as far as your property value is concerned.
If your condo complex is not approved by FHA, another option would be to get what we call a spot approval which would mean that only your unit would be approved. This would depend on certain information filled out by the home owners association on a questionnaire.
If this cannot be done, then your other option would be a conventional loan. You are pretty much limited to 95% loan to value (minimum equity of 5%) unless we could find you a loan at 97%, which would depend on some particular factors according to your circumstances. It is not easy (the 97% condo option), but sometimes it can still be done on condos. But if you need to go the 5% equity route, then your minimum property value would need to be around $305,265 not taking into account closing costs, etc.
A good start would be to find out what the estimated appraised value would be on your property and from there you can determine what your options would be. Of course, you also need to know if your condo complex is FHA approved. I would recommend that you speak to a knowledgable Mortgage Consultant that can help you determine what your specific options would be.
If you have any more questions, please feel free to contact me.
Your other option, if you want to try an FHA loan, is to obtain a spot approval for your unit. This would involve a Mortgage Consultant sending the Home Owners Association a brief questionnaire to determine if the complex would qualify for a spot approval for your unit.
Otherwise, the other option would be to use a conventional loan with a minimum 5% equity although sometimes 3% equity might be available depending on some factors.
If you have any further questions or need more help, don't hesitate to contact me. If you would like to contact me directly, you can view my profile and contact me that way or you can send an e-mail to David at D hyphen Garcia dot com.
I went to the link you posted and attempted to search for my condo complex--it kept coming back with no result, even though I tried to keep the search as general as possible. Am I doing something wrong? We live in the 720 Lofts building in Minneapolis, MN 55401...the association name is 710 Lofts (the association maintains 3 building--the 710, 720 and 730 but has one association name). I searched for "720 Lofts" and generally just "720" and "710" but still no result. Is there another way to find out?
More importantly you need to answer the question of whether or not you should refinance. What are you hoping to accomplish with one mortgage that you can't accomplish with two?
If you can post back some more information about why you want to refinance. We as a community can help you with whether or not it is a good idea for you.