All Forum Posts by: Jeff Brower

@Jack Bao check out my post on the bottom of page 5 of this thread. I put my sample letter and 10 tips for sending out a mini campaign. 

@Jonathan Redd Yes. The MIP stays with an FHA for the entirety of the loan. The only way to get rid of it is to refinance. If you build enough equity to refinance out, yes you can do it again. One FHA loan is allowed at a time. Sometimes banks may not be convinced if you are moving from a nice SFR into a multifamily, you will just have to convince them why you are lowering your standard of living if that is the case.

@Pragati Soni I was not looking for any motivating factors or potential foreclosures. I was simply mailing to all of the good duplexes I could find that I would be willing to live in. 

@Pablo Vargas no this was not a value add deal. No rehab involved. It made sense to me to not buy a value add with an FHA because you are only putting 3.5% down of the entire thing. If you were to rehab, then your rehab costs would be out of pocket unless you did a 203k or something similar.

@Pierre A. utilities are completely separate including water and sewer. this was one very big positive about this property. 

@Kelli Bergiven yes! I posted an image of the letter along with 10 tips for writing one. Should be on page 5 of this thread. 

@Stephen Karakitsios The main thing is intent to reside there for one year. If you do not intend to live there for a year but sign the loan documents saying that you do is technically mortgage fraud. If you move in and live there for 10 months and then move out I doubt that someone would come knocking, but I would not entertain listing it for rent until 12 months have passed. There are a couple of situations where they will accept you breaking the 1 year term, job move, family size increases, etc. If you research on BP you will find those caveats.  I will use my license so long as I keep it. It makes sense to take advantage of any aspect that you can. 

Try getting a list of off market properties in your county and mailing personalized letters. The county auditor may have an online searchable webpage. This is what I did and found the one I am currently hacking.

@Gordon Cuffe Yea it was a great response rate. I attribute that to hand written addresses and 10 other tips that I detailed on page 5. I posted a picture of my letter as well. Check it out!

@Austin Davis That's interesting, we have an almost identical story. Im looking right now for my next one as well. Going to find a fixer SFR that I can fix up and refinance after moving into myself. Sort of a BRRRR but using it personally. I'll then have both sides of the duplex open. I have to live here for 6 more months so I am starting the search now. Good luck on your next one!

@Megan Hodges You sign a document saying that the down payment is not borrowed funds for FHA (like most home loans), but you are allowed to be 'gifted' the down payment money from family. There is a form that they make you fill out and the bank of the family member has to sign to confirm that the funds came from their account.

If total monthly savings is 225 and the cost is 2500, you will make your money back in 14 months and continue to save for the life of the loan. No brainer in my opinion, get that rate locked in!