All Forum Posts by: Ryan Harsche

Spencer, that is the one downfall of using the Fannie or FHA renovation programs. It must be an "Arms Length Transaction." This means there is no self help allowed and the contractor cannot be a family member. But if you have a friend that is a contractor, that could solve your problem. Remember the FHA 203K is only for primary residences, so you would have to move into the home. the fannie mae homestyle, does allow for 15% down on a renovation investment property.

Spencer, 

I'm a lender in Philadelphia, but if you are trying to rehab the home using conventional financing, i would suggest looking into the Fannie Mae homestyle renovation loan.  you can use it on single family investment properties and then you can avoid the cost of refinancing and issues you are discussing here. 

@Brande Gilbert there are a ton of good spots in Philadelphia to buy as a primary home and rent the rest out. I’m not a realtor, but I do invest in philly a lot. I’d be happy to talk with you about all of that. Message me if you want to talk a bit.

@Damien J Michalosky this class is specifically for Philadelphia Housing Authority. So I’m not sure what would cover Clifton,

@Rigo V. Fannie Mae will not allow you to finance a loan in a LLC, so you cannot refinance conventionally. However, I know someone who offers 30 year fixed money on LLC loans. Message me and I'll send you the details. I don't want the moderators to get mad.

I’m thinking of getting into Section 8 Housing. I’m taking the local class in order to be a section 8 landlord in Philadelphia and I’m curious what if any thoughts everyone has on the subject. I’ve heard good and bad things (as with most things). Any help on the pros/cons would be great.

@Jessica Zhang so if you bought it cash and don't want to use an updated or improved value, you can probably refinance immediately. If you are going to do work to the home and want to refinance with the ARV, you will most likely need to wait a minimum of 3 months for commercial and 6 months for conventional.

@Kirk Perecich If you do not currently have a FHA mortgage and you want to buy a multifamily with FHA, I would thin the underwriters would allow it. You would have to write a letter of explanation as to why, but I don't think you would have a problem. As long as you move into one of the units. Moving into a multifamily to help offset your mortgage payment and save money is a perfectly good reason. I'd run it by my underwriter first o make sure though. However, if you already have a FHA mortgage, you cannot have more than one at a time.

@Philip Willis ultimately, not sure what the FBI would actually do if they found out. It would be up to FHA. FHA would most likely call the Note due immediately and then pursue legal action based on their evidence.

@Philip Willis I mean it's honestly this simple.  Occupancy Fraud is still Fraud.  So if you want to go against it, you are committing Fraud.  You are lying on your mortgage application, which is punishable by law with up to 30 years in prison.  It's also not enforced by your local town police, it's enforced by the FBI.  Outside of that, I can't find another reason why you shouldn't do it.