Looking at buying my first house, so of course I'm looking into an FHA loan. Quick question on how to go about acquiring it.
Seems after all the bickering back and forth between whether to create an entity or not, pro-entity side has won. So, I figured I probably can't use a first-time home buyer mortgage if I am purchasing through an LLC. How do I go about this then? Do I tell my lender ahead of time my plans? I want to leave the house in a year or so(long enough to be considered owner-occupied), and then transfer the title into a business entity, hopefully not triggering the due on sell clause, to continue owning and renting out.
Thanks for any advice ahead of time
You must tell your loan officer (L.O.) ahead of time how you want to take title. You'll be undermining your own success if you don't communicate clearly with them. They will work diligently in your interest because it's in their interest to get your loan done. Talk to them. Try to find an L.O. at a mortgage company that specializes or does a lot of FHA. Talk to at least a couple of L.O.'s and make sure one or both are with mortgage companies (vs a big bank) and have several years of experience. They will give you great advice. I say this based on the 8 years I spent as a loan officer/broker and wholesale account rep. -cheers,
Do NOT tell your lender what you are planning on doing.
Waiting a year to quit claim the home into your LLC is good, hopefully doesnt trigger the DOSC.
I believe you can only have one FHA style loan out so when you move out, you will have to put more down.
p.s. not sure why you want to get an LLC, if its protection you are seeking a judge could still side with the person who is suing you. Make sure you have enough insurance, umbrella policy.
Talk to your lender,
it's in their interest to get your loan done. Talk to them.
@Chris Duzan you seem to have a great plan.
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