Updated almost 3 years ago on . Most recent reply
Transferring someone's FHA loan out of their name into your LLC
The current scenario is my business partner's brother wants to use his FHA loan for a duplex and essentially house hack. He wants nothing to do with hands on real estate investing, so my business partner had suggested that we would put up the down payment and do all of the management. The terms of this would be his brother transfers his FHA loan to us which we would want to put into our LLC. He gets to live there for free for one year and then either pay the rent the following years or move out and collect 50% of all cash flow. I suppose the overall questions we had was is this feasible to do, is it legal and what is the best way to structure this? If it is feasible what are the implications for us once he transfers that FHA over to us?
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You won't be able to put a FHA loan in an LLC