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OK HERE’S WHAT HAPPENED. I BOUGHT A HOUSE 2 YEARS AGO USING AN FHA LOAN WHICH SAYS YOU HAVE TO LIVE IN THE HOUSE AS YOUR “PRIMARY OCCUPIED RESIDENCE” FOR THE LIFE OF THE LOAN WHICH IS 30 YEARS FIXED AT 5.875%. I PAID $ 140,000 WHICH WAS 100% FINANCED INCLUDING CLOSING COSTS ($ 6200). I’M NOT BEHIND ON THE PAYMENTS BUT I’VE DECIDED TO MOVE TO ANOTHER AREA WITH BETTER SCHOOLING FOR MY KIDS. SO…..FIRST SCENARIO, IF I SELL IT AT A PROFIT WHICH IS VERY UNLIKELY, I’LL HAVE TO PAY HEFTY TAXES, AS FHA SAYS YOU’RE RESPONSIBLE FOR THE TAX SUBSIDY YOU GET FROM FHA WHICH MEANS YOU PAY ABOUT $ 8000 TO THE IRS. SECONDLY, IF YOU SELL IT AT A LOSS, THEN OBVIOUSLY YOU’RE RESPONSIBLE FOR THAT LOSS PAYABLE TO THE LENDER AT CLOSING WHICH WOULD COME OUT TO ABOUT $ 20,000 IN MY CURRENT MARKET. MY QUESTION IS THIS…..IS THERE A WAY TO REFINANCE MY PROPERTY AT 100% SO I CAN RENT IT OUT UNTIL THE TIME COMES FOR ME TO SELL IT IN A FEW YEARS WHEN THE MARKET IS MORE FAVORABLE? I CAN’T AFFORD CLOSING COSTS AND I’M READY TO JUST WALK AWAY FROM THE HOUSE, BUT I DON’T WANT MY CREDIT DESTROYED. PLEASE HELP ME! I NEED TO HANG ONTO THE HOUSE AND RENT IT OUT SO I CAN SELL EVENTUALLY…..

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We will be happy to hear your thoughts on CAN I REFINANCE 100% OF MY MORTGAGE? HELP!! (TRAPPED BY FHA!)?

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