Could I mix loan types?

5 Replies

Let's say I wanted to buy a house. My first rental property but I don't have the 20% to put down for it. Would I be able to get a FHA loan and only have to put down 3.5% and have a "Partner" Fund the down payment for the FHA loan? I was thinking that in a situation like this I wouldn't have to come out of pocket one bit and this also would be a lot better for my "Partner" that's funding me for my first deal. Any other advice or ANYTHING AT ALL will be greatly appreciated. I hear you can get creative with real estate investing when it comes to buying properties but im not sure exactly how. Excuse me for my ignorance and please inform me.

@Damonta Samuel low down payment are for owner occupied properties. You cannot have a partner unless they are going to occupy the same property. If they don't: mortgage fraud up to $1,000,000 fine and 30 years in a fed prison. You can still not use your money if you can find deals. You can wholesale the property or become a partner.

@Damonta Samuel if you are partnering on an investment , yes you will have to have a minimum of 20% down. If I was going to start over I would buy small multi. By owner occupying you can get by with less than 5% down. Real estate is money intensive. The odds of finding a no money down are slim unless the seller is really desperate. Save up your money and do it on your own. On a $100000 duplex with a FHA 3.5% down it is only $3500 down and ask the seller to pay closing cost. You will still need some additional money in reserves for 6 months of expenses. So for around $7000 you can do it on your own. Save $600 a month and buy a year from now.

I would definitely  look for a equity partnership. You would agree to a % of the property and the proceeds.  Eventually you could buy out the partner.  This the best way to get your feet wet with someone.  

From all those I have worked with you would start a partnership they would want you to have some skin in the game( some of the closing costs) then you would decide who is gonna manage the property. Also you would discuss your Exit Strategy with them.  

I will say this most equity partners do not want a newbie to come to them with a deal that is a half million right away but something smaller. Then when that one is up and running you can get them to usually go with you on more expensive real estate.  

Nothing I am saying are absolutes but that is the way I have seen it work with Equity partners. Sometimes they will buy you out after x amount or you will have a balloon payment in so many years as part of the deal.  

Equity partners are hard to find but I do know a few.