Need a creative advice on getting approved on a second loan

[Alick Patrick]

Hello BiggerPockets!

I started investing in real estate early this year. So far I've managed to purchase one SFH for $385,000 15 miles south of downtown LA and a 3-unit Multi-Family property about 2 hours east of LA. I was able to get the SFH on 3.5% FHA owner-occupied under my name and the MFH also at 3.5% FHA owner-occupied for under my GF's name. I am on my third property now which is another SFH just 20 feet away from my first property. The price is $415,000.

Because I've used up all 3.5% FHA loans I could the lender I worked with managed to convince me to use my GF's son for the new loan. He would be the primary borrower and I would be the non-occupying co-borrower. Everything was fine at first until we were told by underwriter that we don't qualify under FHA guidelines since the primary borrower is not really my relative. I tried looking for another lender and was told the same thing.

Any ideas on what other options I have to be get qualified on a loan at 3.5% or 5% down. Unfortunately I don't have enough funds to put any more than 5% on this property.

I don't have any other relatives that I can work with to co-sign for me. I also don't want to marry my GF just for this purpose.

Thank you!

[Dion DePaoli]

@Alick Patrick, listen some folks may subscribe that that dribble however do not count me into that membership.  

"It is not being deceptive or committing loan fraud to purchase a single family home with the intent of living in it but changing your mind after closing for whatever valid reason"

It is if the ACTUAL plan was not to ACTUALLY to live there.  Which seems to be precisely what you just supported with your comment above.  You can call it whatever you want, but the rest of us call it loan fraud.  Which includes courts of law.  

There is no being "creative" with well establish and understood underwriting guidelines. The guides take creativity out of the picture.  That is sort of their point. 

It is straight forward - you are buying an investment property.  If you want a loan on an investment property do not call it a primary residence and be prepared for the implications of doing it right.  That sir is actually what real businessmen and women do.