Can you refinance a property while it is listed for sale and can you refinance using FHA loan?

Asked by Ellyn Alcantara, 92104 Wed Mar 14, 2012

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Gregorio Den…, , San Diego, CA
Wed Mar 14, 2012
As stated, you will need to take it off the market. You will also need to make sure it'snot listed other places online as well. I'm also curious why you wish to refinance with an FHA loan, do you have one now? If you have a current FHA mortgage there may be streamline options available to you. Contact me for more info.
Web Reference:  http://WeFixRates.Com
0 votes
I am in the same boat, I am trying to refi while listed. In the current market in our area higher priced homes are not selling quickly. I am trying to refi to payoff a home improvement loan on a rental property and payoff credit card debt to ease monthly payments. I am trying to sell house to downsize from a large farm to a smaller house as I am now retired. Is there a way? I am willing to take home off the market.
Flag Tue Oct 22, 2013
Daniel Lehman, , San Diego County, CA
Wed Mar 14, 2012
You would have to pull the property from the market for 1 day, and then initiate the refinance. You would also have to explain why you are taking it off of the market to refinance, and if you are looking for cash out, you might have an issue...

You can refinance with an FHA loan, but instead of trying to figure everything out yourself, your situation sounds like it needs a more of an advisory role for you...

If you give me a call and give me the entire story, I can point you in the right direction and give you an idea of your options. If you are planning to sell ultimately, that PROBABLY doesn't include advice to refinance, but who knows...

Give me a call and I can help you dissect your options.

Daniel Lehman
858-345-4725
0 votes
Vic Yamauchi, Agent, El Cajon, CA
Wed Mar 14, 2012
You can't refinance while your home is for sale. The home loan is based on the fact that you are an owner occupant which makes it a lower risk and therefore you get a lower interest rate. The lender makes the mortgage based on the fact that it will remain on their books long enough to earn a profit otherwise why would the lender lend?

If you need cash out to finance another up leg transaction, then you would be looking for a bridge loan instead. No lender I know or have known in 29 odd years in the lending business would refinance a home that is currently on the market. Makes no economic sense for any lender other than a short term bridge lender to do this.

I agree with Rod, what are you trying to accomplish by selling and wanting to refinance at the same time?
0 votes
Rod Sandy, Agent, San Diego, CA
Wed Mar 14, 2012
I don't believe the lender will do a refi while the house is listed ... you'll have to withdraw the listing, then after the refi is complete you can put it back on the market.

But I have a question for you ... why are you refinancing the property if you are selling it? This confuses me ... won't you be pulling equity from the property once it is sold? If you can add a little more insight to your question, perhaps we can give you a more detailed answer ....

-- Rod --

The Powers HomeSelling Team
Serving San Diego Families for 30 Years!
http://www.SanDiegoFamilyHomes.com

PS: If you send us your contact info (PowersRealEstateTeam@gmail.com) I have a handout to send you: How to Finance a Home in Today's Market. It's here for the asking - No cost or obligation of course ....
0 votes
Please send a copy of the handout. to billc7222gmail.com Interested rental property owner needing to lessen monthly payments. Thanks Bill
Flag Sun Feb 15, 2015
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