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Updated almost 6 years ago on . Most recent reply
First Multi-family Investment
Looking to jump into my first deal and could use some guidance. My girlfriend and I have a joint mortgage on a single family home where we currently reside. I'm looking to buy a four-plex as my new primary residence to avoid putting 25% down. Concerns? Suggestions?
Most Popular Reply
What is the current loan product that you have on your house? Certain loan products can only have 1 loan per borrower under most circumstances (FHA, VA, USDA, for example).
If you have greater than 20% equity in the current house, you can refinance and use an FHA loan on the new four-plex. If the FHA loan for your current house is in your name, then your girlfriend could always get the four-plex in her name assuming she qualifies for the FHA loan. Final thought, if you were to pursue the last route, it would be wise to have some sort of legal agreement formed that protects you in the case your relationship doesn't work out.
As always, speak with a couple of mortgage brokers as they may have some other options for you.
Hope that helps.