FHA 1st 4Plex ... Development ... Creative Finance Help
Good Day Bigger Pockets Folks,
Looking into utilizing the FHA first time home buyer 3.5% down program for the purchase of a 4 plex.
The rub is I want to construct a certain type of Steel SIP 4 plex. While doing much of the work myself. From my limited understanding FHA does not allow new home construction for this type of first time home buyer loan.
So I wanted to ask the community if we could look at this situation in the eyes of creative financing.
1. If I get Pre-Approved from FHA that I am approved for the loan up to X amount. Is it feasible to work with an investor/contractor to build the 4-plex with a guarantee to sell to me after the project is finished?
2. If I worked with an investor what are creative ways to make something like this happen? Some thoughts:
* I do want to do some of the finish work as I do have construction experience. So the cost of construction would be less than industry average which would lead to increased profit margin for investor.
* I would be one of the four first tenants. So maybe it would be less of a risk when building. Although 1 of 4 is still a risk.
Appreciate any thoughts about ways to guarantee purchase of a new 4 plex utilizing FHA program.