All Forum Posts by: Michael Cohen

Personally I'd go with option 2, but it depends on your goals and risk tolerance. My dad lives in Bradenton. Enjoy the weather !

That's a construction to permanent loan, not 203k. FHA does have a CTP, but they're extremely rare so you'll have to search for lenders who do it.

They only have to be a 203k certified pro if using full/standard 203k. Any licensed and bonded contractor can do streamline work. Also, it's 3.5% of down payment, repairs, and fees/escrows.

All national private lenders (i.e. Not banks) will do it. Not hard at all. Google mortgage rates and use the maps to find ones near you.

I like that all the lenders are jumping in here with what amounts to "F no!" Chris articulated it perfectly. #2 and #3 air both acceptable options provided you disclose the contract in BOTH scenarios.

With HomeStyle, you could do: 1) 5% down SFH 2) 15% down duplex 3) 25% down 3- or 4- unit

To expand, a property designated as an investment property (i.e. you do not live there as your primary residence) requires you, the owner to have at least 20%-25% equity. You can put that amount down up front or you can use a low down payment option and wait until the equity builds up through property value increase.

HML vs. traditional banks/lenders is merely the conduit on how you finance that down payment, and it's relevant to the equity you have.

@Andrew Brink - welcome to the club. :)

@Conner Franklin - Unfortunately, it's a bit too complicated to create a bulleted list of FHA requirements, as there's always an exception.

CREDIT SCORE: FHA will allow down to 550 (or so, don't remember the exact number) but most lenders won't go below 600. Some big banks won't lend below 700 or higher.

INCOME: In general, you need at least two years of work history. As a W2 employee, college can count as part of that history. So if you went to school then got a job within that industry, typically lenders will accept either a signed offer letter or at least 30 days of employment. If you are self-employed, most lenders require two years of success with that business. Some lenders will allow only one year of work history if your work history is in that industry.

ASSETS: FHA requires 3.5% down payment. Acceptable sources of down payment include:

1. Borrower's own funds: cash, savings, checking, retirement accounts, etc.
2. Gifts from relative (blood or marriage), employer or labor union, charitable organization
3. Sale from previous home, trade equity, rent equity, sweat equity
4. Government grants and loans

The following are NOT acceptable sources: seller, real estate agent or broker, builder, associated entity, lender. Basically anyone with an interest in the sale of the property.

Hi Leo Hunter welcome to BP! The VA loan is designed as owner occupy primary residence. Same for FHA That is why LLCs cannot be used to purchase properties using it, as that makes it inherently an investment property. You will have to purchase the property in your name and agree to live in it for at least 12 months.