Refinance from FHA to Conventional Loan / Cashout & Home Equity Line of Credit Question

[apacislvallejo]

I'm refinancing my FHA loan to rid myself of the PMI/or MIP .... because I didn't have the 20% down, and blah blah blah .... anyways.  I'm conditionally approved.  But when the appraiser came, he valued the house at $320K to where I thought the value would be at $270K, and my FHA loan balance and buyout is $215; which leaves me plenty of room to cashout, which I did for an additional recommended $40K. 

Could I also qualify for a home equity line of credit?  If so, should I ask now, it just cleared underwriting with a conditinal approval; and I submitted the documents to support this conditional approval ... so we haven't closed yet ... or should I wait until after close to go to another financial institution to request one ... and can i use the recent appraisal they used for this refinance? 

Thoughts?  Thanks, f.

[ShanetheMortgageMan]

A 2nd mortgage (HELOC or HEL) would require an underwriting review to start over from scratch.  There will also be a negative adjustment to the 1st mortgage rate if you do it simultaneously with the new 1st mortgage, so I'd recommend you just wait until after closing to pursue that option.

[apacislvallejo]

Thank you so much. I think that's valid. I'm definitely going to wait. Appreciate your response.