Owner occupied w/partner, 3% conventional loan advice?

[Levi Bingham]

Hello all,

I have been searching but not finding exactly my scenario. If you're aware of some reading I can do on this, I'd appreciate a pointer to the material!

My partner and I are interested in buying a 4plex, and both living in the same unit. We are both providing funding, and intend on separating responsibilities via a written agreement.

I understand that if either one, or both of us, do not live in the property then it's either mortgage fraud or we are looking at commercial/investment loans. We considered using an LLC and living in the property, but again would be pushed into the commercial/investment side.

If we are BOTH living in the property, is this a legal, above board way of purchasing a 4plex?

I do not think it's entirely relevant, but for what it's worth my partner is my long term girlfriend, we do intend on getting married, but it won't be before we'll be in a position where we're ready to buy.

If needed I can buy it in my name only, but we would both really like to get her on the title, and have her contribute to the deal.

[Will Fraser]

Hi @Levi Bingham - This flies in the face of simplicity.  Occam's Razor is a wise guide here.

You're going to need to move heaven and earth to get your GF on the loan when, in reality, that's simply not how the loan product is designed.  You can typically get an unrelated co-signer passed, but OVER AND OVER AGAIN we see these things go sideways and it is NEVER the initial thought or plan of the couple.

The simplest solution (usually the best) would be for YOU to purchase the home and borrow the down payment money (or a portion) from your LT GF.   Have a payback plan with her that includes whatever you want it to (a portion of cashflow, an interest rate, etc) and then IF you two get married the issue with being on title goes away.  If you don't, you've got a clean and tidy situation to walk through -- simply abide by the terms of the payback plan.