All Forum Posts by: Greg Enersen

Hard money is usually a shorter term loan (6 months to a year is typical).  The primary negatives of hard money (my opinions of course) are that they almost always require multiple points and double digit interest rates, at least for first time borrowers.  In a word, hard money is expensive.  If you are looking to buy and hold a property, hard money will not make sense because it will end up being too expensive unless you have a specific, short term exit plan.  Hard money is much better suited for rehabs.   

LOL!  Sorry, I didn't notice who I was responding to.  

Hey Adam,

FHA requires that you live in the property for one year. You can use FHA financing for approved properties up to 4 units if you have a 600 credit score and the down payment is 3.5% of the purchase price unless the appraised value comes in lower than the purchase price (rare but it does happen on occasion).

If you don't want to live in the property, most conventional lenders will require 20 or 25% down.  Also, your credit will be more of a factor with the best terms available for a 740 score or better.  

Hope this helps. 

@Robert Andrade. You are correct that most banks will require at least a 620 FICO for FHA financing. However, the bank I work for will go FHA up to 4 units with a 600 credit score and no negative price adjustments.

My sincere apologies Sarann. Mr. Patel is right. FHA loans do require you live in the property for one year unless the lender agrees otherwise in writing. I'm not sure what I was thinking but definitely did not intend to lead you astray. Thank you Mr. Patel for calling me out. I will be more careful next time.

Hi Sarann,

While you will have to purchase the property as your primary residence to use an FHA loan, there is no requirement that you live there one year. You won't be able to use FHA financing on another property since you will have an FHA loan already in place, but there are no requirements as to how long you have to live there. As far as conventional financing goes, unless you qualify for the My Community Mortgage, you would be required to put more than 5% down (at least with my bank). Conventional financing also is affected by your credit much more than FHA is. It is also likely you will pay a higher interest rate on conventional. My opinion (for what it's worth) is that FHA is the way to go.

Good luck!

I know of both.  My wife and I bought a property in Fort Worth through a turnkey provider and I know an agent that works with investors and even manages properties for them.  Shoot me an email and I will get you their info.    

Hey Jessica,

I am a lender with an FDIC insured bank that specializes in government loan offerings including FHA. Here are the answers to your questions:

1. Yes

2. Yes 

3. Complete an application and submit your tax returns (I can help with that if you like).

4. I would see if you qualify and if so, try to execute your plan.  It sounds like a good one as long as you truly intend to move into one of the units (at least for a little while).     

There are a few conventional lenders that are offering products that are a little more "outside the box".  Unfortunately, my bank is not one of them but I have a friend who is a former colleague that might be able to help.  Let me know if you would like to connect and I can get you his info.