Partnering to gain primary resident status

3 Replies

My daughter needs a place to live and I want to purchase a rental investment. Can I partner w her on the purchase and claim primary residence for financing if she lives in one unit of a duplex?

@Tricia Miller FHA? (or other owner-occupied fannie/freddie product)? I believe you'll need to gift her funds, but that is typically reserved for down payment assistance and regulated by FHA. You could likely just transfer the money to her, but this will raise red flags in underwriting. Is there a reason you would use an owner-occupied loan product?

@Tricia Miller One of you would have to be primary owner...FHA is pretty technical, but its the cheapest way for non-military folks to get into a 1-4 unit property. Fannie and Freddie have other programs like Home Possible where you can get in for 5% down (based on location and income restrictions). Most conventional lenders will go 75%LTV on non-occupied so 25% down should be worst case.

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