FHA Strategy Suggestions - Multi-Family - First Purchase

[Marcus Isaac]

Hello All,

This is my first forum post on BiggerPockets. I’ve enjoyed clicking through the forum and have learned a lot. After tons of research, I’m starting to put my plan in place on how I can purchase my first multi-family investment.

I have a strategy that I’m leaning towards, but I need some insight on whether this is the right way to go, and if so, the best way to go about it.

I’ve sparked my family’s interest in investing, and I have their support, but I’m the one that will be spearheading everything. My contract just ended for the company I was working for and I don’t plan on going back until 2 months or so. I have good credit (700+), but lack the personal capital to garner a mortgage for myself (I believe) without getting creative.

My plan is to use my sister as the person to obtain an FHA loan (she has good credit 700+, Ok paying job, and capital). My question is how should I go about this so that I benefit (on paper) as being part of the deal? From my understanding you cannot obtain a FHA loan when using an LLC, so in what way can we partner on the deal? I'm pursuing the FHA route because I'm looking to invest with low money down.

[Chris Martin]

Talk to a loan broker. They will help with the FHA rules, like... you have to live in the property you buy.

Welcome to BP