FHA Experts? A question on 4155.1 4.A.1.i

[Michael S.]

A question on  this section for FHA loans:

I was wondering whether it was possible to contribute part of the down payment to a home (alongside the primary homebuyer who will live there, I will not live there), be on the title, but not be on the note /guarantee the mortgage. This section implies that it's possible for FHA. However, in the borrower source of funds sections, it doesn't really provide for having a non-occupying non-borrower provide funds?

In the same light, if this party has an ownership interest but is not applying for the loan, can that party be an LLC?

Thanks, BP!

Michael

[Andrew Postell]

@Michael S. no problem.  Here's the answers:

1.  If you are not related you cannot gift funds to the purchaser.  Must be an "immediate" relative (so no 5th cousin twice removed relatives).  Sister is ok.  Friend is not
   1. b. the best method to learning about FHA loans it to have this become your full time job. That's kind of a joke but kind of not. Learning about these loans is daunting. My recommendation is to know the concepts of the loans and to rely on a good loan officer who can navigate you through all these intricacies.
2. While I'm not sure why you would want both entities listed on title, it is possible to do so after closing.  Just get with the title company and it's about $100 or so to add someone to title.