FHA Loan to purchase a multi family unit

Member since 2022 · 1 post · 0 votes

Looking to invest in a multi family complex with son who would be utilizing his first time homebuyers loan. Any advice on how we would both benefit from that, as we will likely be providing the down payment and sharing in the investment prospects going forward?

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Nicholas Ruscio
Lender · Member since 2023 · 112 posts · 35 votes
3y
Hi Syd,

Thats great you are planning with your son.

Are you or your son planning to live in the property? Do you currently own a primary residence under a FHA loan. Please feel free to send me a DM!
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Zachary Ware
Member since 2022 · 405 posts · 455 votes
3y
Is this your and your son's first investment property?
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Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
3y
In order to use the FHA loan, your son will have to own the property in his or spouse's name and it needs to be 4 units or less. You won't be able to partner with him in the legal sense. Beyond the typical reservations about partnering with family, you probably want to help your son get started. You'll need to discuss with the bank about you providing the down payment. While you can give gifts to family members, you may not be able to provide the whole down payment.
The best idea is to talk about this with the banker before moving forward.
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Melvin ListBusiness Member
Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
3y
If he is going to live in the property the easiest way to finance this would be to go FHA with 3.5% down. He can use his credit and income and you can gift the entire down payment and closing cost. After he lives in the property you will probably need to go conventional. The property will also have to pass the net self-sufficiency test.
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