FHA Loan with Girlfriend?

Question

Hi! My girlfriend and I want to dip our toes into investing and was looking out of state.

I was wondering if we would be able to get an FHA loan as a joint tenancy while unmarried. I read that they would allow if we both live in the property for a year together we wouldn’t have problems but if only one person occupies in the home we would pay 25% of the loan (which wouldn’t make sense to do an FHA).

If that is true, would it be possible to have me do an FHA loan myself, live there for a year, once I move out I add my girlfriend to the property as a joint?

I want to add my girlfriend to the property because she can provide me the other half of the capital I need to invest. We have been together for 7 years now as well.

Thanks!

JD Martin · Answer

Don't do it. There's a reason - I don't know what it is - that she's still "your girlfriend" after 7 years. There are huge financial (and other legal) advantages to being married, and someone(s) willing to forego those benefits after this many years definitely has a reason besides "I don't need a piece of paper to say I love someone".

There's a reason you don't hear about boyfriends & girlfriends celebrating 20,30,40 year anniversaries. It's because it doesn't happen. If you do this you will in short order be back here asking the forum how to untangle the mess.

Chris Szepessy · Answer

I have to agree with the rest...get married and then buy/invest with your wife. It can get too messy buying a house if things don't work out. I also think you're going to have a problem convincing a lender that you're owner occupying an out of state house. Don't give up, though. There are plenty of other options out there!

Chris Herrera · Answer

@David Nguyen from experience if you can qualify on your own then put it under your name or at least talk about an arrangement for a prenup if she’s going to be putting in cash on the deal.

It just makes it simpler if you’re both not on it if you’re able to qualify for it

Brent Coombs · Answer

@David Nguyen, not to be nosy, but, if you were married, it wouldn't be an issue, right?

Judge Judy will tell you it's not wise to "play house", then expect her/courts to clean up the financial messes later.  If you watch the show, you'll know the outcomes aren't pretty.

FHA, "out of state"?  But of course, if you've got your 3.5% deposit you would be able to refinance out of the FHA loan after 12 months, in both names.  But by then, you'd need 20-25% deposit for the amount your Lender valued the property at. (That's a lot of dollars to make up, if you only have 3.5% between you now to buy a cheap out of state home).

Welcome to BP.  Good luck...

David Nguyen · Answer

@JD Martin I understand! We been together since high school that’s why the 7 years but do plan to marry within a year or 2! It seems it is best I house hack on an FHA myself and leave her out of it until we are married and can invest together

FHA Loan with Girlfriend?

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