All Forum Posts by: Danny Ye

@Paul Welden

Thanks Paul, I appreciate your concern and that is definitely not my intention! I'm just trying to figure out the intricacies of the loan so that I can plan for the length of time I'd have to live in the property before I decide that I wanted to move/pursue another deal.

@Paul Welden

Thanks for your reply and for pointing out the fact that the FHA requires you to use the property as your primary residence for at least a year.

I read that you can refinance out of an FHA loan after 6 months if you are up-to-date on all your payments. After refinancing out of the loan into a conventional loan, the one-year primary residence requirement would no longer be applicable correct?

Really appreciate you pointing out the Freddie Mac ChoiceRenovation loan as I have not heard about that one yet. Will check it out and see if it would better fit my situation

Thanks!

@Matthew Porcaro

I see, that makes a lot of sense! Really appreciate your responses here as I'm much more confident moving forward now. Thank you again for the advice!

@Matthew Porcaro 

Thanks for your quick reply! I saw your responses on other questions regarding the FHA loan so I really appreciate you taking the time to respond and give your advice. I'm somewhat of a must-know-the-next-steps type of person but I definitely agree that getting experience under my belt is more important and feel reassured that more doors will open after the first deal.

I read that you financed your first deal through FHA and was able to build significant equity through the process. When you moved on to your next deal, did you cash-out refinance into a conventional loan for your next property?

Hi everyone,

I am a new investor based out of California and am looking to get started in real estate investing. First off, thank you to Brandon Turner, David Greene, and all the members of the BiggerPockets team. You guys have me HOOKED on real estate investing and I am dedicated to succeeding in REI. And of course, thank you to the rest of the BP community who have contributed so much value and insights to newer investors like myself on this forum.

I found a short sale SFH and have determined that the numbers will not necessarily work as a long-term rental but will work as a flip. I'm thinking about using the FHA 203K loan to pursue this deal and have some questions regarding this loan.

1) How long after the loan close can I sell (flip) the property? I read online that you cannot sell within 90 days of loan close?

2) After selling the property, would I be disqualified from further FHA loans for 3 years? FHA defines first-time homebuyer as "an individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase."

I'm afraid that if I use the FHA loan for this flip, I will be disqualified from using it again right afterwards (for at least 3 years?). If this is the case, I don't want to waste the loan on a flip and would rather use it for a long-term rental property.

Any advice on the above would be greatly appreciated. Thank you all and stay safe!