I am a veteran, and would like to save my "first time home buyer" benefits. If I purchase homes to flip through my LLC would I lose those benefits?
@Phillip Jewell are you talking about using a VA Loan or the a first time home buyer loan.
If you're talking about using a VA Loan you can only use that for a property that will be owner occupied and you would lose eligibility after you used it the first time; however, you can regain eligibility by paying it off and requesting it again.
As for a first time home buyer program, according to what I have seen The FHA defines a first time home buyer as a person who has not owned a home for three years.
So, in the case of this program as long as the LLC owns the property I don't think that would disqualify you for the program.
( These are only my thoughts on the topic... I strongly recommend that you confirm this prior to making a decision )
be very careful with LLC! In theory an LLC is an amazing way to protect and shield your assets. The issues is everyone knows that! Most companies won't lend to you LLC with a non recourse loan (ie only not personally scurrd) for single family. Therefore if your using a mortgage than your going to have to use your name. This violates a lot of the protections. We opened up a LLC when we got started . We actually closed it to the point that I wrote an article about it. Oh and LLC is going to be an investment so you have to put 20%+
The va loan has to be a personal property and lived I for a year. So while using a LLC protects your first time benefits. You have a lot to pay down!
I cannot emphasize the need to talk to a lawyer and a mortgage broker!
@Chad Huffer yes the plan is to purchase the House to fix and flip without it interfering with my first time buyer benefits. Because I'm not planning on living in the house, I was thinking the same thing it shouldn't affect benefits. @Elizabeth Colegrove thank you for your response, I do need to talk to a lawyer. And great info! Do hard money lenders also require investors to use their personal info and not just the LLC? Thank both of you for replying.
have you thought about living in it for a year or two and than selling it? Hard money loans are "very" high! We have done very well leverage personal property and investment conventional as our knvestment plan! Conventional money has paperwork and regulations but if you play the game much cheaper!
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