First time home buying with hard money?

2 Replies

A newbie with a n00b question!

Am I correct that a first time home buyer loan, can only be used once?

Is it crazy/out of the question/not realistic to think that I could...

1. Create an LLC

2. The LLC purchases the property with a hard money loan and/or with some investors

3. Buy another property down the road with one of the first time home buyer options? 

Thanks!

@Ben Brown First question, you can actually get a FHA loan multiple times throughout your lifetime. However, typically you will be restricted to using ONE at a time. So if you used it on a property, you would need to use a different loan type for the next if the first loan was still open.

2nd question, yes you can do that. In fact those are some fundamentals to investing in general. Hard money lenders actually require a EIN or LLC for loaning money. Additionally, the property will need a good business plan showing a sound investment. This will help with raising the investor interest and hard money lender approval. A HML will check credit, so if you do have a mortgage from your FHA, it will show up. Thus having a good business plan or proof of a performing rental will help.

As for number 3, you don't necessarily need to live down the road unless you wanted to. But if you were going to take care of the property and act as property manager, I could see why you might.

Hope that helps!