I bought my first house, built in 1999 (3/2/2, 1730 sqft, 0.13 acre) in Phoenix, AZ for 166,500 back in 2003 with 4.875% 7/1 ARM (now at 3.375%).

Renting is want we plan to do, but my issue is that we bought this house with a 5yr ARM.

Again, no one "Lied" but, that omission was placed on a form (Non Arms length affidavit) that was part of a package submitted to a Federal Agency (Freddie Mac) and, some entity ending in "Mac" made a financial decision to accept an amount less than the full principle balance.

So consider exercising extreme care, or explicitly do not represent them for that property.

Jessica, IRS rules are pretty clear, all transactions involving an IRA must be 'arms length":https://www.irs.gov/retirement-plans/plan-particip...If you've seen something done that doesn't make it right.

Turns out his wife never told him that she had stopped paying the mortgage so she could play the one armed slot machines.

Hi @Mike Re,If you're going to pay the ARM HELOC off relatively quickly, like flippers do, HELOCs are great.

To add even more the the above- if you use delayed financing (cash out in less than six months) it has to be an all-cash purchase at arm's length and you have to be able to document the source of the cash. 

He ended up explicitly asking for a refund, writing: "... this should be open to some sort of refund.

Since the current it is an ARM loan we are going to refinance anyway and wondering if it's better to refi in my name only.Thoughts?