Civil Engineer · Thousand Oaks · Member since 2016 · 42 posts · 10 votes
I would like to invest in a 2-4 unit property so I can "house hack" however, I don't think I will be able to come up with a down payment for a property in LA. However, I think I may have already found an investor. I have good credit, solid income and qualify for an FHA loan.
My questions are:
1) What would be the best way to make this work? if the investor let's say put the down payment.
a) The loan would be under my name so how would the investor make money?
b) The investor suggested I take care of the payments and then I can pay the investor back.
The trick is going to be seasoning the money for FHA. Your "investor" can gift you the funds through the transaction, but if he expects to be paid back, then that won't work. You should arrange for terms for the money first, then deposit the funds into your account so that they can be seasoning for at least 2 bank statements prior to getting pre-qualified for your loan.
In terms of the investor making money, if it is structured like a loan, then you would pay him back like you do your mortgage payment.