FHA First-Time Homebuyer Loan Advice

4 Replies

My friend and I are looking to purchase a duplex to "house hack" (live on one side, rent out the other) in Columbus, Ohio, and would like to utilize FHA's 3.5% down first time homebuyers loan.

My friend has a job as an accountant and has a stable income history and good credit. Myself on the other hand does not have a W2 income history, but I just graduated from college and started work as a real estate professional flipping and renting out single family and multi family properties. My credit is well above what FHA requires as well.

What is the best way to structure the loan in this case? Is there a way for the both of us to equally contribute to the down payment and get a loan on good terms? I am new to FHA and mortgages in general so any advice would be appreciated.

As long as you are on the loan you can contribute the down payment in any way you want. When did you start working as an Investor?   If its in this year you are fine but if you work couple month last year and showing on your tax return then make sure you run your scenario with your lender. 

HI Satoshi,

Do you want to speak with a local lender here in Columbus to discuss how exactly to structure this loan?   I agree with 

@Harjeet Bhatti in that you both need to sign on the loan then you are equally liable and can combine down payment.

My honest advice? You should each do one yourselves. Putting you both on the loan will only prohibit you from doing 2. Once you get a steady two year stream of income, you can qualify yourself and do another. 3.5% FHA is like gold, but you only can have one (at a time). If you both don't have enough money to put down 3.5%, then you need to save more.

Originally posted by @Satoshi Tanaka :

My friend and I are looking to purchase a duplex to "house hack" (live on one side, rent out the other) in Columbus, Ohio, and would like to utilize FHA's 3.5% down first time homebuyers loan.

My friend has a job as an accountant and has a stable income history and good credit. Myself on the other hand does not have a W2 income history, but I just graduated from college and started work as a real estate professional flipping and renting out single family and multi family properties. My credit is well above what FHA requires as well.

What is the best way to structure the loan in this case? Is there a way for the both of us to equally contribute to the down payment and get a loan on good terms? I am new to FHA and mortgages in general so any advice would be appreciated.

 Hi Satoshi, many of us have posted in the past about the need for a great team; real estate agent, lender, property manager etc... Best thing to do is check in with a couple of good lenders, run the scenario by them and see what options they have for you.  Best of luck with everything! 

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