Private Investor Refi or Suggestions on How to Move Forward

[Jalen Greenlee]

Hey!

Last month, my wife and I purchased a fantastic duplex in Madison, WI, for $400,000 using an FHA loan. Our plan was to do the traditional house-hack, but things haven't gone as planned.

During some self-testing followed by professional testing, we discovered lead in several high-traffic areas of the home. Since the house was built in the 1940s, we should have tested for lead during the inspection. Unfortunately, we weren’t fully aware of how severe this issue could be, and now we’re facing the consequences.

The Current Dilemma

My wife is pregnant and due to give birth next month. The lead issue, coupled with an overall discomfort with the neighborhood and the home itself, has significantly impacted her mental and physical well-being. Naturally, she wants to be in a more comfortable environment to welcome our son into the world.

However, there's a legal hurdle. With an FHA loan, we're required to live in the property as our primary residence for at least one year. The only way to bypass this requirement legally is to refinance into a conventional mortgage. Unfortunately, we can't do this for another 200 days due to FHA restrictions.

Exploring Alternatives

One potential solution I’ve considered is working with a private lender. Here’s the idea:

• A private lender could pay off the FHA loan, allowing us to give them the first lien on the property.
• This would free us from the FHA restrictions, enabling us to move to a more suitable living situation while addressing the lead issue at a later time.

What I Need Help With

1. Private Investor Leads: Does anyone know of private lenders who might be interested in exploring this option?
2. Other Suggestions: Are there alternative strategies I haven’t thought of that would allow us to move legally and responsibly under the current circumstances?

We’d deeply appreciate any advice or insights. This situation has been incredibly stressful, and finding a viable path forward would mean a lot to my family.

Thanks in advance for your help!