All Forum Posts by: Christopher Phillips

@Manasseh Arnold

Depends. I believe in the state of NY they can't be both your agent and your loan officer. I think FHA has specific rules against it. It might depend on what you're doing.

@Milton Carrillo

It's technically possible.

You have to agree to occupy the FHA multi family. So, you would have to rent out the single family. You might run into a debt to income ratio issue with the second property. Depends on a few things like if they will include the rental income or not. They usually only include it if you have prior experience as a landlord and can show that on your tax returns.

@Gregory Williams

I hope it helps. Keep us updated...

 Very cool. Still haven’t used my benefits...

That makes sense. But it means you won’t account for reserves in the first year while paying the partner. That puts you on the hook if the roof or boiler/furnace has a problem. Things go wrong in rental properties - even when turnkey.

@Account Closed

Being a first time homebuyer isn't exactly relevant. There really isn't such a thing as a first time homebuyer loan.

HomeStyle Renovation is a conventional mortgage that lets borrowers finance improvements, renovations or repairs to a home at the "time of purchase" or as a "refinance transaction." It's just a conventional Fannie Mae product. You can be in the process of buying a home or already own it and need repairs/upgrades.

FHA isn't a first time home buyer product. It's just a HUD based product with different parameters vs. the HomeStyle Reno product. You can already own your own and use the 203K reno product to fix it up. Like the HomeStyle product, the 203K program allows homebuyers and homeowners to use it. The catch is that you can only have one FHA loan at a time. So, if you already have an FHA loan and you want to use the 203K to buy another home, you technically won't be allowed. Some exceptions are if you plan to move for work with a minimum distance of 50 miles from where you live now. Otherwise, you would have to pay off the current FHA loan or refinance it to a conventional loan. Then use the 203K to buy and repair the 2nd home.

@Gregory Williams

A new roof does add value. It might not increase the rental amount, but the value of the will be improved. Figure about $10,000 depending on the square footage of the roof, number of total stories, and complexity of the angles. Is this asphalt shingle or metal? You might get a local contractor to due it for less if it's not a rush and they don't have to replace the plywood and underlayment.

You would be better off fixing the stairwell issue. Not being able to rent it out as a 2 bedroom is a lost opportunity.

Since your mom purchased for cash, it might be worth talking to a lender to cash out so you can do the repairs/upgrades and then use the remaining money to invest elsewhere. The other option would be to due the repairs first out of pocket, and then reimburse yourself with the cash out.

Just have the conversation with the lender. They want your business. They can work with whatever scenario works best for your situation.

@Susan Tan

You'll have to run the numbers. Questions: Is the property cash-flow positive after the reserves? If the rent check goes to the partner, how do you plan to pay the mortgage? What are the expectations if you have a vacancy? Do you still owe the partner a monthly payment, and what about the mortgage and utilities in that case?

@Gitit Hefetz

In general, yes.

You'll have to speak to the local offices about fees to be active. There is usually a monthly fee for technology. And there are annual dues for your local multi listing system. If you are mid year, they will likely prorate the fee, so you don't have to pay or all 12 months. And the local board will probably have some continuing education credits that you'll need to take to be current.

In the end, it will depend on the average commissions for your area. If homes are expensive like most major cities, then it will likely be worth it.

@Michael Giaquinto

You have to be owner occupant for either an FHA or an FHA 203K.