Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
6y
This is a tough one. You can GIFT her the down payment, but you will have to certify to FHA that you do not expect to receive payment back in the future.
Any funds that you expect back are considered a loan, and would need to be documented with the lender as such. The lender would then need to qualify her based on the loan amount to you, and what that payment would be, in addition to her payment to the lender. So any formal agreement would need to be disclosed to FHA.
If I did do a loan that would be legal so thats good to know.
With this new information - I wanted to co-sign for the FHA loan for her and then loan the closing money, then rehab it and after her year is up start a LLC with her and have her sell the house to the LLC.
If I did do a loan that would be legal so thats good to know.
With this new information - I wanted to co-sign for the FHA loan for her and then loan the closing money, then rehab it and after her year is up start a LLC with her and have her sell the house to the LLC.
How about that?
It may all very well be legit, but it sounds shady. FHA could have a case against you and your sister as a straw buyer.
If you intend to be the end holder, best to just secure the property yourself through a conventional loan with the appropriate down payment.