It’s our understanding that once you’ve closed on your FHA loan – even if it qualifies for USDA, you can not then refinance into a USDA loan. This is the information available from the USDA Home Loan Website regarding this.
Most loans have a seasoning policy. This means that once you get a mortgage, you must wait a period of time before paying off the loan. Other loans allow an immediate payoff but can charge a penalty fee. Check for the verbiage in your FHA loan documents to see.
Before rushing to refinance, however, make sure that you count the costs. You will have additional closing costs on the new loan to factor in as well as any interest rate write-offs. But considering that it could save you $380 a month – I bet you really do not care. Good luck!
It’s something a very terrible situation, but don’t feel that it’s going to be a good idea as it would be more problematic for any further refinancing. Well what exactly I feel in such type of condition that either one should not get entitle for such kind of loans and further should acquire thorough knowledge about it. Getting rid from such situation would be holding hands of some private company as unclebuck, kwik cash for being legit and transparent. It’s all what I have done if been gone through such problem, else there might be more options regarding to this.