All Forum Posts by: Trentan Moore

@Albert Bui Ok thanks for the help. Judging by what I am seeing in the Pittsburgh market, I don't think I should have a problem qualifying under that requirement.

@Joseph Scorese Hopefully I can find a lender in the Pittsburgh area that is helpful enough to walk me through all those requirements. You are saying I can find a lender outside of that area if needed? Will it still close as easily? 

@Albert Bui thanks. I found this helpful spreadsheet on BP regarding this rule. https://www.biggerpockets.com/files/user/logdog/fi...

Looks like it's an 85% self sufficiency rule in Pennsylvania? (which should make things easier to qualify)

@Albert Bui so you're saying gross rents X 75%-PITIA has to be over 0 to qualify for FHA loan? This seems near impossible since its a low down payment and PMI is applied. Only applied to 3-4 units? Also does this include the rent for the unit you live in?

@Andrew Postell Yes, that explains it, Thank you! Also just found this article

https://www.fha.com/fha_article?id=513 . I was hoping it could be done as co-borrowers so it could increase our limit, but I guess that would eliminate the 3.5% down. I will have to see what I qualify for as an individual borrower.

@Clayton Plank thanks that could be the problem. I am pretty sure it was structured both as "co-borrowers". We originally wanted to both be on the loan so we use both incomes to increase our purchasing limit. Is there any way to structure it that way and be able to qualify for the 3.5% down? Maybe as a co-signer?

Hi Guys,

My business partner and I are looking to take advantage of the low money down option of using an FHA loan to purchase a 2-4 unit property in the Pittsburg area. I would be the owner occupied resident that has to live there for 1 year. As we were going through the pre-approval process my lender informs me that FHA requirements are to put 25% down. This completely contradicted everything I have read/researched about FHA as a house hacking investment strategy.

I was wondering if anyone could clarify this and was also looking for a recommendation for an investor friendly lender in the Pittsburgh Area so we could get a second opinion.

Thanks

Originally posted by @Charlie Fitzgerald:

Yes.  To not do so is Fraud.

 Well that answers that, Thanks.

I am not even sure if it this is in the right forum, but is it a requirement to disclose a seller financed property to a bank if it does not show up on my credit report? Maybe this is something that will be found eventually anyway, but just wondering if I should disclose it when getting loan pre-approval.

Charlie Fitzgerald thank you, I can understand that.

Thanks Charlie Fitzgerald but aren't you the owner of the property at day 1 when the title is transferred over? And what about after 10 years when 75% of the note is paid off, could refinancing into a trading all mortgage be an option?