Engaged and looking to do two separate FHA’s

[Nick Sorensen]

Hi everyone, my fiancée and I have found a great first deal. The deal consists of two homes, right next to each other. The first home,I am pre-approved for, for a fha loan. we would like to do a fha under her name w the other property, that is a foreclosure. We’re just curious to know if this possible. our lender tells us he will not do this because of legal reasons . The question I have is ... if we are not married and already have separate addresses, in different states, why would this be unadvisable for a lender? Any type of feedback is helpful. Thank you all.

[Theresa Harris]

@Nick Sorensen  If you are each planning on living in your separate house, then there should be no reason why they won't do it.  If you are planning on living together and renting the other home, then it would equate to mortgage fraud.

[Anthony Wick]

@Nick Sorensen

Well, your lender most likely doesn't believe you will each be living in the respective properties for at least 12 months. How does your lender even know you're engaged? If you will abide by the rules of the FHA loans, just go to different lenders.

[Jerry Padilla]

@Nick Sorensen

As long as you both intend on living in the properties you each are purchasing for a year there shouldn't be an issue. FHA is for primary home purchasing, as I am sure you both know.

[Wayne Brooks]

Because he is not an idiot.

[Chris Mason]

Originally posted by @Nick Sorensen:

Hi everyone, my fiancée and I have found a great first deal. The deal consists of two homes, right next to each other. The first home,I am pre-approved for, for a fha loan. we would like to do a fha under her name w the other property, that is a foreclosure. We’re just curious to know if this possible. our lender tells us he will not do this because of legal reasons . The question I have is ... if we are not married and already have separate addresses, in different states, why would this be unadvisable for a lender? Any type of feedback is helpful. Thank you all.

I don't see the issue. Unmarried person A is buying house A, unmarried person B is buying house B. Obviously you're committing to not moving in together for a year, and if that isn't the plan than it would be fraud. 

A few years ago I did a pair of mortgages for a pair of houses right next door at the same time, both being purchased from the same seller (1031 exchanging them into a strip mall in the midwest, gotta love Bay Area home values). Got permission from both and even introduced them via email at the end of the transactions. No rule says I can't do the mortgages of neighbors.

Hell, I had one where a married woman bought a house a half mile away from her family home. Their marriage therapist said they needed a few years apart to save the marriage, but it would be best if nearby for the kids. This was fully documented (& real) as both his motive for a cash out refinance (down payment) and her motive and intent to owner occupy. 

If you don't want to live together for a year, that's on you. Mortgage people aren't the morality police. And if we were, isn't "don't live together until married" the traditional religious motivated thing to do anyways? Who am I to tell you what YOUR God does and doesn't permit? It's actually kind of cute, like something you'd read about as having occurred in times long gone... Jill had a crush on Jack, so she purchased the home next door to his.

Obviously it will have to be packaged well by the LO for underwriting, but I totally don't see any other issue. If the LO's knowledge of guidelines comes from gossip around the water cooler rather than actually reading the guidelines (unfortunately, not uncommon in my industry), then sure that's an issue... and you should find a new lender, who will be your advocate and partner, rather than getting in the way b/c they don't read guidelines.