Funding Process Questions

[Teonia Riley]

Hi everyone! Just looking for clarification on this concept. 

If I were to use the First time homebuyer program to help with purchasing purposes and then get a hard money lender for renovations to attempt BRRRR strategy, would this be something that could work or NO, dont try it?

(Yes I'm aware you have to live in the property for 5+years if doing the FTHB)

[Doug Smith]

I agree with Ave, but to add to that, if you're going to live in the property, then that negates a hard money lender from lending to you. After the last crash, the Feds put in place many new rules and statutes that require lenders, with a very few exceptions, to verify a borrower's income on an owner-occupied property. Hard Money Lenders don't do that. As Ave mentioned, they also need a lower loan to value to make it work for them. They won't lend to you to make up the difference in the down payment and, if you're going to live there, they can't really lend to you at all.