All Forum Posts by: Nicholas Wieczorek

The above two comments did a great job of letting you know about the self sufficiency test, as for letting them know about your partner you have two routes you can go through; you can requalify with your partner to potentially get a bigger loan and thus reach the self sufficiency test approval, or, what I had some clients do instead of going through the pre-approval process again,  you could stick with your loan approval and go for the property you have in mind, and let your partner know that you will write him into the deed, wish you the best of luck in your investment!

FHA also has condition requirements (safety, security, soundness)-no peeling paint on pre 1978 homes, functioning mechanicals, roof with some useful life left in it, etc., so can skip looking at heavy fixer uppers if you definitely want to use an FHA loan.

Also, not sure the plan with your friend helping you out-but if with down payment funds, if loaned, think they'd count that as a debt burden on you or require them to sign that the funds are a gift.  

Hi Nicholas
The beauty of FHA is that it allows you to put 3.5% down payment to invest in 1-4 units. However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test. In order to past this SS test, your appraised market gross rental income at 75% has to be more/equal to your monthly mortgage payment (PITIA).  However, if you are only sticking with single family residence or a duplex then the SS rule will not be triggered. These are something to be considered. Wishing you all the best in your deal and happy to connect. @Carlos Valencia @Albert Bui