Updated over 7 years ago on . Most recent reply
Friend offering loan for down payment.
Hello, I am looking to get into an FHA loan on a multifamily home. My friend is offering an investment just for the down payment. I could have the down payment in a few months but somewhere near the finish line I'll be couch surfing as I am moving for my job, and will also need to Uber for some extra cash.
So the homes I am looking at are around $125k. With an FHA loan I would need just over $4k. This will be my first property and I will occupy a unit. My friend wants to build his money and would like me to keep it for 5 years with a 12-15% APR.
I am wondering if this is a reasonable idea or if it makes a lot more sense to couch surf and save. The cash on cash ROI would be about 60% for the property since the FHA requires very little money to get up and running. I personally like the idea of not couch suflrfing, but o really don't want to put myself in a situation I may regret. It seems the cost has a minimum impact on my yearly take home.