Down payment for Niece

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My wife and I are considering loaning our niece a down payment on a house, where she could get an FHA loan. She would then live in and rent out to other roommates. Our thought is we would offer her a 50-50 partnership with us. Once purchased, would you do a quick deed claim into an LLC? After a year or two, refinance into a a standard mortgage?

The rules for the down payment on an FHA loan are pretty strict that you must have no intention of being repaid if you give her the down payment money. It must be a gift. I would also caution you to be careful on quit claiming the title into an LLC after closing. Usually this requires permission from the lender (if they allow it at all).