When looking for off-market deals, is it possible to do FHA loan?

3 Replies

Everybody says you can find the best deals off market. I want to know if it's even plausible for my situation.

I will need to do a FHA and probably have to have a contingency that I sell my primary residence. I don't want to make a fool of myself contacting owners with these terms if it generally can't be done.

You can do an FHA loan as long as you live in the property you are using it on for at least a year. As for buying the house being off-market, that shouldn't matter. If you doubt whether you qualify for an FHA, they have a requirement list you can Google.

As for selling your primary home, I do not know what your goal, market, or financial situation is, but if my market was good and my financial situation was solid I would keep that property and potentially rent it out. If I had to, I would sell it and use the extra cash on a good rental. Again, I don't know if you are trying to get into rentals or what not, but that's what I would do.

Originally posted by @Justin Carpenter :

You can do an FHA loan as long as you live in the property you are using it on for at least a year. As for buying the house being off-market, that shouldn't matter. If you doubt whether you qualify for an FHA, they have a requirement list you can Google.

As for selling your primary home, I do not know what your goal, market, or financial situation is, but if my market was good and my financial situation was solid I would keep that property and potentially rent it out. If I had to, I would sell it and use the extra cash on a good rental. Again, I don't know if you are trying to get into rentals or what not, but that's what I would do.

 Thanks for the response. I guess my question is more about whether any seller would consider accepting those terms. Most people on here looking at off-market deals buy with cash or hard money it seems. 

I do qualify for FHA, but I will not qualify for two mortgages. My house is not a great candidate for rent anyways. I would only be able to have 100-200 left over after PITI, which is not enough IMO. I have essentially zero equity and likely over-payed just a little, so needless to say, I will not have anything left over after the sale. Plan is to sell my house and buy a multifamily. Trying to come up with some creative ways to get the best deal possible.

Dillon

@Dillon Leider I have used the VA loan, which is very similar to the FHA, to buy a 4-plex, and it was an off-market deal. So from my limited experience, I know people will consider it, but it depends on the the person you are making an offer to.

Buying with cash is great, and one of many reasons that makes it great is that it gives people incentive to sell by making closing on the property much quicker. Cash has it's benefits but if all you can do  at this time is borrow, then stick too it and eventually someone will bite.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here