[Luis - brittany Sanchez]

Can you please tell me if there are any flaws in the following scenerio? Anything I missed? I can not find much information about refinancing an FHA loan into an investment property loan. Would this work? Is there anything I am missing? Such as you can't use a lump sum, or can't refinance from FHA to investment, etc.THE BACKGROUND+ We purchased our townhouse at 150k 16 months ago. + Have made some minor & cosmetic improvements to it such as nicer paint, better flooring, appliance upgrades, etc. it presents MUCH better than before so I hope it would have slightly higher appraisal)+ We bought using FHA. Home is legimately owner-occupied. I am just thinking ahead and really want a backyard soon.+ Husband is on the title but income could not be used at the time due to lack of 2-yearjob history (he was a new immigrant at the time)THE PLAN+ Refinance as investment property down to 75% loan to value - paying a lump sum of about $35,000 - $40,000 to help it get there if home value is still appraised at only 150k+ Monthly payment (including taxes, PMI, etc.) would be reduced by about $200 a month. Is currently $1035.+ PMI would go away then right? Reducing it by about another $50 a month?+ Credit is not very good does this matter in a refinance?+ Roll closing costs into the new loan+ Rent to husband's parents at $1200 which is slightly below FMV+ Can use 85% as future rental income (no 2-year history needed for FHA) = $1020+ Take a loss of about $93 per month (new mortgage including taxes of around $825 + insurance of $35 + HOA of $253) = 1113 and (expense 1168 - countable income 1020) = $93+ Go out and qualify for a new FHA loan on a SFR to be owner-occupied for good+ This time include my husband's income assuming he then has a good 2-year work history