All Forum Posts by: John Gach

I wasn't sure how to word what I'm looking for but basically I'm interested in a MFH that has 3 units, the 2 smaller ones are rented out but the larger 3rd unit needs major restoration, it probably has cracking and peeling plastor in some areas, and may have other issues. I was planning to do an owner occupied type loan for it but I was curious if certain loans are less strict on what the property needs in regards to livability of the home. I'm not interested in a 203k because I plan to slowly fix everything myself while hopefully the other 2 units pay for the property. thx

@Brent Coombs I apologize I'm not trying to ignore anyone's recommendations. I'm just trying to wrap my head around everything I've been researching without confusing myself. I do appreciate all the people helping with my questions. It's a complicated situation I'm getting myself into.

I don't mean to hi-jack, I'm sure this is a simple question I have to ask. Is it a problem to borrow 50% of my 401k to use as a down payment for say and FHA loan or conventional? Will the bank not like it? I found a MFH I'm interested in that I didn't save up cash to prepare for a down payment etc. thx

Originally posted by @Chris Mason:

Originally posted by @John Gach:

Originally posted by @Chris Mason:

Originally posted by @Albert Mayzeles:

Is this program for first time home buyers only? Or can folks with multiple properties move up to purchase another owner occupied MFH with only 5%? Seems like an excellent way around FHA and the permanent mortgage insurance.

You do NOT have to be a FTHB. However, this...

Practically, this means you can have sold your previous home last week, but can't own other RE as of closing except as described above.

So for folks that already own a bunch of real estate, not really a model match.

Anyone just getting out, however, folks in their network need to be bringing this to their attention!

Do it Rich Dad Poor Dad style: start with an income-producing asset, and use the income from THAT to help offset the personal mortgage on the SFR McMansion you purchase later on (or, because this is BP, the run-down beat up SFR that's in crappier condition than the crappiest unit they are landlords of... hey we can invent a joke: "How do you know when you're in the home of a BP member?" - "Because they tell you they own 15 units all with new granite countertops + new fridges in the kitchens, but their personal kitchen has 30 year old countertops and a 1960s lime green fridge."). 

Sorry to hi jack.

So My mortgage with my girlfriend is in both our names, but she is the one that always writes the checks for paying the mortgage out of her account!

Does this mean I can qualify and keep myself on my current property?

Like I always send her money with my bank account to help pay for the mortgage, but its never titled as a payment, just use my bank app to send cash to her at the time of the month for the mortgage.

 You need to be off title and off the mortgage. 

 Ok, the very last bulletin confused me. 

Originally posted by @Matt Turbitt:

some will, some won't, it may be because during underwriting they are going to look into where you are living and if you own or rent, they will see that you just came off the loan and it won't pass a sniff test and they will want to count your current mortgage debt against you even though you aren't on it anymore.

 That's interesting.

So if I went to 2 different lenders in order to refinance my current house, and then go get the new mortgage on the MFH, would that more likely pass the test?

Originally posted by @Chris Mason:

Originally posted by @Albert Mayzeles:

Is this program for first time home buyers only? Or can folks with multiple properties move up to purchase another owner occupied MFH with only 5%? Seems like an excellent way around FHA and the permanent mortgage insurance.

You do NOT have to be a FTHB. However, this...

Practically, this means you can have sold your previous home last week, but can't own other RE as of closing except as described above.

So for folks that already own a bunch of real estate, not really a model match.

Anyone just getting out, however, folks in their network need to be bringing this to their attention!

Do it Rich Dad Poor Dad style: start with an income-producing asset, and use the income from THAT to help offset the personal mortgage on the SFR McMansion you purchase later on (or, because this is BP, the run-down beat up SFR that's in crappier condition than the crappiest unit they are landlords of... hey we can invent a joke: "How do you know when you're in the home of a BP member?" - "Because they tell you they own 15 units all with new granite countertops + new fridges in the kitchens, but their personal kitchen has 30 year old countertops and a 1960s lime green fridge."). 

Sorry to hi jack.

So My mortgage with my girlfriend is in both our names, but she is the one that always writes the checks for paying the mortgage out of her account!

Does this mean I can qualify and keep myself on my current property?

Like I always send her money with my bank account to help pay for the mortgage, but its never titled as a payment, just use my bank app to send cash to her at the time of the month for the mortgage.

I might be confused with what he said then.  I'm not sure if he said he can't refinance my current home to have it only in my girlfriends name and also do the mortgage for the new MFH or if he just said in general that if I got out of my current mortgage and went to buy this MFH that would not possible.  I'm not sure exactly which part was the issue.

I suppose I need to find a different type of lender that has less overlays.

Originally posted by @Melissa McGuire:

theres a loan program for multifamily offering that super cheap as long as one unit is occupied by the owner.  You mentioned that theres quite a bit of rehab needed. If you lived a unit while rehabbing it you would qualify for the fha loan. Just a thought

 That's exactly what I want to do, but I don't want to do a 203K type loan because I want to do the work myself, and I'd like to keep the place able to pay for itself.  If I took out a mortgage on the cost of the house and 30k for repairs, the current rent in the place would probably not pay for the mortgage and taxes.

In reality I would like to occupy the property for the minimal 1 year and then live with my girlfriend, obviously still traveling to the MFH to continue to work on it and repair it.

Any other tips for me?  Thx

@Chris Mason it's just strange to me that he said that, I guess he said he couldn't do the refinance and the new MFH mortgage. If it's legal to do what I am trying to do then why is he concerned like I'm being a criminal?

So I was talking to someone who works in finance for a realtor company. I was talking to him about how to try to obtain this MFH home, I told him my girlfriend seems to be ok with us refinancing our house in just her name, which would allow me to get an FHA loan on the MFH i'm trying to qualify for, he said he wouldn't be able to do that to his underwriter?

I'm not sure why he said that and why it would be a problem, I would legit live in the property which I believe I would need to for just 1 year and then I can technically move wherever after?