Can I use FHA Owner Occupied MF Loan to buy property my LLC owns?

[Daniel Dietz]

Hi All,

I am working on exploring the FHA Owner Occupied for Multi Family properties and have not been able to find the answer to this yet.

If an LLC that I own a share of (33%) ALREADY owns a 2-4 unit MF property, can I PERSONALLY use an FHA Owner Occupied Loan to purchase it FROM the LLC and occupy it? The original loan to the LLC is NOT an FHA loan.

Thanks, Dan Dietz

[Steve Vaughan]

You and the other LLC members could agree to sell the property to you personally for 67% of market value, effectively 'buying' you out of your membership.

Then you wouldn't appear on any of the seller closing docs. No self-dealing.