FHA House Hack Question

[Nate Ramos]

Hi Everyone,

I'm having some trouble mapping out my plan and would appreciate any assistance I can get. My goal is to purchase a 2-4plex, to house hack and take advantage of a loan down payment loan. In addition, I would like to do it with a partner for financial assistance. However, I understand that if we approach the buying process as a partnership, we won't qualify for an FHA loan.

Is there a way to qualify for an FHA loan, while still maintaining a partnership structure, and all partners receive the rewards of the returns?

I just want to ensure that I approach it correctly, without causing an issue to where we would not qualify for the FHA loan.

I hope this makes sense.

Thank you for any help!

Nate

[Jon Schwartz]

Originally posted by @Nate Ramos:

Hi Everyone,

I'm having some trouble mapping out my plan and would appreciate any assistance I can get. My goal is to purchase a 2-4plex, to house hack and take advantage of a loan down payment loan. In addition, I would like to do it with a partner for financial assistance. However, I understand that if we approach the buying process as a partnership, we won't qualify for an FHA loan.

Is there a way to qualify for an FHA loan, while still maintaining a partnership structure, and all partners receive the rewards of the returns?

I just want to ensure that I approach it correctly, without causing an issue to where we would not qualify for the FHA loan.

I hope this makes sense.

Thank you for any help!

Nate

Nate,

You should ask a lender for the specifics about FHA loan requirements. I'm 99.9% sure, though, that the loan is only available to individuals, for corporations or LLCs. You won't be able to form a legal partnership and secure an FHA loan for that entity.

Speaking more broadly, house hacking provides great return for the house hacker, but a lousy return for an outside investor. The majority of the return comes in the reduction of your cost of living.

I supposed you could work out a structure in which you pay fair market rent for your unit or room, and then profits are split thereafter. You'd still have to get your FHA loan as an individual and keep this side arrangement with partners off the mortgage. Is that what you're thinking?

Best,.

Jon