Buy and Hold under LLC with FHA financing?

5 Replies

Just a quick question that I couldn't quite find the answer to but I think I know the answer, I just want to see if anyone has heard of this being done successfully or something similar to it being done successfully. 

I live in Orlando, FL. I have a lease at an apartment complex that I really like and I still have 11 months on my lease. I want to buy a multi-family property and rent out the units to make a positive cash flow. Can I buy any form of housing (whether it be multi or SF) using FHA financing as a first time home buyer without living in the property for the first year?

Like I said, I think that the answer is "NO" but if there is something similar to that situation that someone has done, I would love to hear about it!!! 

Don't forget to tag me in your replies so I know when someone has replied to the forum. Thank you for the help! 

Hey @Jeremy Carl  

You can not buy a property under an LLC by means of an FHA loan. The loan must be in your name. Instead, put an umbrella insurance policy on the property. This is what I did after I bought my duplex.

You can buy a home using an FHA if you don't live in it IF you claim it as your primary residence...just make sure you have your mail forwarded to your apartment.

You could also sublease your apartment, and actually live in the multi family...just a suggestion.

@Jeremy Carl  

p.s. To avoid any possibility of loan fraud, I suggest living in the multifamily.

Originally posted by @Jeremy Carl :

Just a quick question that I couldn't quite find the answer to but I think I know the answer, I just want to see if anyone has heard of this being done successfully or something similar to it being done successfully. 

I live in Orlando, FL. I have a lease at an apartment complex that I really like and I still have 11 months on my lease. I want to buy a multi-family property and rent out the units to make a positive cash flow. Can I buy any form of housing (whether it be multi or SF) using FHA financing as a first time home buyer without living in the property for the first year?

Like I said, I think that the answer is "NO" but if there is something similar to that situation that someone has done, I would love to hear about it!!! 

Don't forget to tag me in your replies so I know when someone has replied to the forum. Thank you for the help! 

FHA stipulates that you will be required to live there for a min of 12 months and will have to move in within 60 days of loan closing and or recording whichever is later.

You can only close in your personal name or a revocable living trust. Whether you decide to move the property into an LLC and if its "cool," with your servicer will determine by your moving it into the LLC and asking for forgiveness or they can call your loan. Usually they are cool as long as its a performing loan still and the ownership in the LLC is still 100% you not an assortment of new owners.

Thanks for posting this question @Jeremy Carl. I ended a lease within the past year and have moved into my finances house that he purchased years before we met. As we are starting on this journey, FHA loan was something I was considering a possibility to obtain a first multifamily propety that we would live in half of but didn't even think about how the LLC would would impact the ability to obtain that loan.  


Thanks @Albert Bui and @Jordan Redar for the information on the LLC. I have another question about the FHA....I have never purchased or owned a home (our house is solely in my fiancés name). Would us getting married in the next year affect my ability to obtain an FHA since my future husband is a homeowner?

The answer is NO, as you thought,,can you cheat, yes, you can also shoplift today when your shopping, but I don't advise doing either, they are against the law, and mortgage fraud is a lot more serious than shoplifting

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