Updated over 2 years ago on . Most recent reply
FHA + Utah Housing: Can I take over payments?
Hey everybody - I'm in negotiations with a family that is looking to offload their house which is a little bit underwater right now. (Worth $90k on a good day, they owe $100k.) They would be willing to break even and just let me take over payments via seller financing, or a wraparound mortgage. My strategy would be to hold as a rental for a long period and get some ok cash flow while the loan is slowly paid down. Appreciation would be nominal.
The problem is they've got 2 mortgages, an FHA and the Utah Housing Corp down payment assistance, which is recorded as a second mortgage for about $4k. The info I can find online is that no portion of the property can be rented while the UHC note is in place. I don't think I'd mind bringing $4k to the table, but with the FHA - which doesn't take kindly to seller financing, I'm not sure what other options there might be.
Any ideas, or knowledge on how to legally secure an FHA wrap or seller finance?