Homeready Mortgage to finance multiple properties?

Question

Hi,

I am from Omaha, Nebraska and I am just getting into my first deal, using HomeReady mortgage to finance it. I did get a 3% down payment on it and the rate was really low and it was super easy to get it.  I wondered it is possible to buy multiple properties (not at the same time) using this type of financing. Here is what I was thinking:

1. Buy a property using HomeReady.

2. Move in and fix the property (my intention is to actually live there for a couple of months as my primary residence).

3. Find tenants to pay for your loan and move out.

4. Contact my lender to see if I could move the property into an LLC  and if they don't allow I would refinance it.

5. Once it's under an LLC I would buy another property using HomeReady loan...Rinse and repeat.

I was just wondering if such a thing would be possible in any way ( since I don't want to break any laws!) and If not, why?

I would really appreciate any suggestions and any other similar ways of doing deals?

Thank you for your time and your expertise.

Chris Mason · Answer

HomeReady is awesome, especially for folks with FICOs from 680 to 740. We don't get to use it in the Bay Area very frequently.

When you got that property, you promised to owner occupy for 12 months, so you will have an incredibly hard time doing it as quickly as you indicated on your timeline. Other than that though, it's no longer a first-time homebuyer only thing, so yup you can use it again and again.

Nick Drago · Answer

thank you, I cant believe it can actually be this easy!!  :)

Melvin List · Answer

@Nick Drago you will need to live in the property longer than 4 months.