Investor · Kearny, NJ · Member since 2016 · 38 posts · 14 votes
Preamble:
My girlfriend and I are currently living together in our first house hack and we're looking into what our next step in real estate investing should be. She's never bought a primary home for herself so, she's eligible for the 1st Time Home Buyer incentives.
The Question:
If my girl buys her first investment property can she use the 1st Time Home Buyers program on it and if not, can she still use the 1st Time Home Buyers Program for her first personal home purchase after she buys the investment property?
@Mark Belenky congrats. It is my understanding though, that the only way she would be able to use those incentives would be if she lived in it for at least one year. Moving out prior to 1 year, or not moving in at all could be construed as mortgage fraud so be careful with that. Good luck!
@Mark Belenky Congrats to both you and your girlfriend for living in y'alls first house hack together and are already looking ahead into the future!!!
FHA is designed in order to help homeowners, not investors. They require that the FHA loan be used for only owner-occupied properties. But with all that said you can still use the FHA loan to buy a rental property - as long as you live there. FHA Loans can cover a 2 to 4 unit rental property as long as you can prove that one of the units will be your permanent residence, you intend to live in it for the majority of calendar year and meet all other requirements. You can then rent out the other 3 units. She can also use the FHA loan if she already has bought investment property before too.
@Chase Busick Let's say she then wants to buy a personal home after she purchases the investment properties, would she still be able to take advantage of the 1st time home buyers incentive program. From the sounds of what you've said it doesn't sound like it.
@Mark Belenky Yes she would be able to use the FHA loan if she meets the requirements and if the investment property is not her personal residence/living there.
@Mark Belenky congrats. It is my understanding though, that the only way she would be able to use those incentives would be if she lived in it for at least one year. Moving out prior to 1 year, or not moving in at all could be construed as mortgage fraud so be careful with that. Good luck!