All Forum Posts by: Noah Stout

@Chace Fraser really appreciate that! I will take your advice and speak with some local lenders. Im curious as to why you say I CAN have a non occupant borrower on the 3.5% FHA and other replies are saying I need minimum of 15-25% for the same thing. Seems like a lot of grey area that probably will be most easily clarified by local lenders, nonetheless I appreciate your insight!

Hey @Reid Chauvinappreciate that!

Quick question, it makes sense why I wouldn't be able to utilize the FHA in that scenario but are you sure it would have to be 25 if i went conventional route? What about a 5% down conventional, considering it will be owner occupied

Thanks @Alex Nigh for your insight. Unfortunately my brother and his fiance already have a house so he won't be living in the property with me. So I believe that isn't possible for our situation.  Can i ask what led you to ultimately deciding to not have her cosign and get her own loan instead? 

Novice Here:

Im curious if its possible or wise to have my brother cosign a FHA mortgage with me?
The property would be a duplex that I House hack, ideally using a FHA loan. I am only asking bc my w2 income is not sufficient enough to get a loan on the type of property we want. Is there anyway to take him off the loan after a year so he doesn't have the added DTI?

Down the road we plan on owning several more rentals together in a LLC.

Any thoughts/insight/advice is greatly appreciated!

Plan Overview:

I would like to preface by saying I am new to real estate investing and do not own anything yet, however after diligently listening I believe i have a plan. I would really appreciate any advice or critique as my main concern was the chronological structuring and also if anyone knew the time table of refinancing a FHA loan even after repairs) If anyone experienced has any insight to refining this plan, I greatly appreciate it!

Plan Overview:

Get FHA loan for 3.5%

Renovate

After a year, Refinance to a conventional 30yr fixed loan to get lower interest rate, and get access to equity + remove MIP. (Example: buy house for 250k, put 25k into rehab, ARV is 320k

 estimated return after repair ~45k + whatever equity we have after a year)?

After a year cont'd,

Look for new duplex to move into and repeat the process however using only a % of the intial properties equity for downpayment (the other % goes to a 20% down payment on a non primary residence investment loan) 

From my understanding, since the initial FHA was refinanced to a conventional loan, I should have no issues getting the second FHA loan(or try 5% down conventional loan if thats more beneficial)

Hello,

I am getting a duplex to house hack in and am getting a FHA loan for 3.5% down.

My question is since i am getting a fha loan and the property will be my primary residence and the other side being rented out, will I just have to take on the risk of renting it out for a year without it being under a LLC? Or is there a way to get a loan for my LLC from the beginning?

would an option be to transfer ownership to LLC after a year? And if that's an option is there any stipulations with my FHA loan, or if I were to refinance down the road?

thanks for the reply steve! 

Considering after a year of living there and I move out, (I believe thats the minimum required for a FHA) i look to get another duplex and do the same thing. However, with the first property; Are we able to or should we transfer that duplex to a LLC as it will run as a full fledge rental? Thanks

Hello, first time buyer here;

I am looking to buy a house hackable duplex. I would like to purchase this under an LLC and would be living at the property for at least a year. Ideally i would like to use a FHA or low down payment conventional loan but I'm curious if those types of loans are even available for a newly formed LLC with no income history. The LLC is a partnership with my brothers and we all have very steady income, outstanding credit history and cash in reserves.
What are our options?

Is buying the property in one of our names and transferring the loan to the LLC after the year of living there an option? If so, are there any refinancing or tax complications when changing ownership?

Is there any better ways to get a low down payment loan in a LLC? Sorry if this appears as a dumb question but im a novice and happy to learn! Thanks for any time