Helping a friend with an FHA loan issue...

[Nick P.]

He lives in NJ, currently unemployed because he just sold his family food business (was not in his name). As a result of the sale he has $50,000 in the bank. He would like to house hack a duplex/triplex/4plex as his first investment. Does he qualify for an FHA loan given he's currently unemployed yet has a good amount of capital that would be more than enough for an FHA down payment?

[Shawn Mcenteer]

Hi @Nick P.  house hacking in NJ with 50k can be tough, does not leave your friend with mush cushion and likely forces him to go turnkey which the majority of the time leads to House Hacker getting stuck in the property for many years since they have not acquired significant equity.  With all this being said if he cant prove his unemployment to be temporary or show income to cover a monthly payment it will be tough for him to qualify for any loan.  Without knowing his full background and story it sounds like he should find income (job) save some more capital and work enough to qualify for loan.