1st Time Home Owner Loans for someone who owns a home

[Jessica Torres]

Hello BiggerPockets team,

I am looking to buy my first home, preferably a multifamily so that I may live in one apt and rent the other. I have good credit and a stable job. I called the bank to ask about a 1st Time Home Owner grant here in Puerto Rico which gives up to $45k for qualifying residents. I was told that I will not be approved for a mortgage due to my work history. Apparently here in Puerto Rico you have to provide proof that you have been working with a company for a minimum of 3 years or self-employed for a minimum of 2 years. My previous place of employment of 7 1/2 years shut down last year due to Covid-19. I was told I would have to remain with my current employer for a minimum of 3 years to be eligible for a mortgage.

My mother has offered to take out a mortgage under her name, however she owns her house here in Puerto Rico as well as a multi-family in NY. I would be the one making the monthly payments, the only downfall is that she does not qualify for this grants for 1st time homeowners or a USDA loan.

Any ideas or tips?

I am not sure if opening an LLC would be a possible loophole in my situation, or if my best option is to have my mother take a mortgage in her name and make the payments for the entirety of its duration.