Here's everything you need to know about FHA loans so you can make sure you don't run into any issues when you're ready to qualify → ua-cam.com/video/S-v9ZxJevfo/v-deo.html
Do you have to stay living in the property until you hit the 25% equity mark, or are you able to move out after a year? Thank you for all you helpful information!!!
Personal Notez: - after one year if you have 25% equity in the property you are eligible for another FHA loan and you can repeat the process - lenders will probably ask for reserves, 3-6 months of mo/ mort payments - FHA requirement you need to live there for a year otherwise you might get occupancy fraud - after a year see if you can get a refinance into a conventional loan. That way you can drop off some mortgage payment
Man, love the channel! :) My wife and I are blind and are buying our first house, and we live in a sellers market which has always sparked our interest as we move up the socioeconomic ladder. Just found you the other day by accident, youtube suggested you after watching a few related vids. Super professional, accurate, and informative. Also straight to the point with swag. :)
@@WinTheHouseYouLove hey thanks a million for taking accessibility into consideration. Just keep being thorough and. You're doing a great job being accessible
Excellent advice. I'm encouraging my brother to save for his first investment[so he can have tenants to help pay the mortgage]. In Boston prices are high but there's always the opportunity of you are ready and well informed. In already a landlord. It's not easy, but I'm glad the investment is providing dividends.
Thank you so much. I’ve been saving up to purchase my first investment property. I have over 20k saved already, I was thinking I need at least 20 more K’s to qualify for a down payment. Thank god I came across your video🙏🏾(I just subscribed)
Great Video ! My wife and I are learning everything we can now to hopefully invest in our first home sometime next year. We are in NYC so the cost of entry is extremely high.
Super helpful video! One thing I noticed though - Is you actually can house hack with a single family home! :) There many options such as rent by the room and subdividing the house itself to allow for tenants under your same roof
I’m going to be a first time home buyer Looking to purchase a property then eventually looking to purchase a renters property. Could you make a video or direct me to a video on what to expect and what to do to purchase a home? Thank you I recently subscribed, very good channel
Awesome!! Sure thing: Fully Prepare To Buy A House (Step By Step Guide): ua-cam.com/video/ujc7775SDEk/v-deo.html What To Expect During The Mortgage Process: ua-cam.com/video/engzD-d8IOY/v-deo.html
Love your videos mate - but just a minor production tip (which you might've already received): small patterns on shirts, especially eccentric ones like this video, give the camera a really hard time. I'd recommend just a plain color or something with large patterns. Then you won't have moire like you can see in this video. Cheers!
My FHA loan for a 3 unit just got denied a day before closing. FHA said that the rent collected from the 3 unites would not cover the mortagage amount. They want the home to pay itself to qualify??? why is my income not being taken into account? plus they stemitaed the rent from two unites way below market. :(
Would it be possible to purchase a home with FHA loan and sell it right away or after living in it for 90 days? Currently looking to build a new home via FHA loan and then sell it due to the cheap price my contractor gave me and the resale price of homes in my area.
It's possible, but your lender is most likely going to get charged a penalty. This is called an Early Pay Off. It doesn't harm you in any way, but as lenders I don't like EPOs because they cost me money. I'd at least talk with your lender about it out of respect for them.
If you already have a home with lots of equity but don't have enough for a down payment of 20% or more would an FHA loan be a good way to go? I realize I would have to rent out my current home and move into a multi unit.
You would contact your lender and let them know what you would like to do. They will either put the title in the LLC’s name and you will be obligated on the mortgage, or, you might have to refinance to have the LLC as the borrower on the mortgage.
Why do you need 25% before you can move into your next fha property? For some reason i thought after one year of living in the house you could go and do it again...
FHA wants you to use their insured loans to only buy a primary residence. The more equity you have in a home, the less risky it is to them, so they're more willing to lend to you again if they know their first loan they gave doesn't have as much risk.
@@WinTheHouseYouLove is this just to get another fha loan for another location? I was planning on get a place for a couple of years, renting it out when I leave and refinancing that fha to a conventional if it seemed reasonable given rates and such and buying using a conventional at my new location (single family residence)
If you did this house hack on three houses and lived in one of them permanently, how would you protect your other two assets? Do you transfer them to an LLC?
Can you gget an fha loan if the other apartments are rented out to your LLC. In example I build a recording studio on one floor and rent it out to my LLC and then live on the other floor
Thank you for your value. Question, can I house hack with FHA on a construction to perm loan on a 4plex? Also, Can you give me an example of what you mean when you say "once you hit 25% in equity" are you saying once 25% of the loan is payed?
@9:41 so does that mean if i hit 25% mark i dont ve to sell the 1st property ! & still i can get another property with applying again to FHA ? Still Or i must sell the 1st one to apply for the 2nd one via FHA
i know this might be a odd question.... if i apply for a fha home loan and buy a fixer upper can i use some of that home loan to fix up my new house or do i have to use my own money to fix up my new home???
Just called an officer and found out that Quicken Loans do not lend to borrowers who desire to buy a fourplex under FHA. They can lend if it is conventional. I also found out that Supreme Lending, Certainty Home Loans, Bank of America do not lend under FHA for a fourplex.
That's weird! As long as you're living in one, you're perfectly fine according to FHA. They must have overlays. I work with Motto Mortgage. Call a local office and they'll take care of you.
You are right. The guidelines under FHA are clear. However these lenders have added their own requirements, overlays, just like they may change the guidelines on credit score under FHA from say 580 to 620. Similarly, they may have additional requirements on reserves. For example, although FHA says two months reserves, most of them ask for four to six months reserves. But that was not weird enough until I came across one of the lenders who was more weird than all the others.. One of these lenders actually used "projected income" on a multifamily property rent I was interested in to disqualify me.The lender said "if we approve you based on these rents, your income will be above the limits allowed".
I’m doing a bit of research for potentially getting into an investment property through the process described in video. It’s great to know the pros of getting into this type of investing but one search on Reddit and you can see the many real world landlords advising of the cons like bad tenants, costly repairs, maint, etc. I think it would be wise to inform your audience about the cons to getting into this sort of investment.
ok but what is the benefit of FHA vs Convention where you can do the same thing with convention with 3% down (or 5 if you can afford). With current cheap interest you don't really want to refinance in the future so conventional is better and you can avoid PMI right?
Thanks Kyle for all the great contents you’ve been given us. It’s been a little over a year since I purchased a home with a va loan and I would like to rent it out and buy a new one. Should I consider va, fha, or conventional? Credit score is right around 650.
So I have a 3 family dwelling with the fha loan and would like a purchase again, I didn’t know you can use fha loan more than once if you plan to live on the property for a least 1 year. I thought it was only for first time buyers
do they allow properties that have 2 homes on 1 lot? or do they have to have shared walls like apartment? thank you enjoying your videos and your personality.
Looking to buy a 2 unit home with basement with FHA loan, it's true the MIP is a cash flow killer. If I'm investing 25K after. Closing costs and I'm cash flowing only 400/month... It would take me 5 years to break even. What am I doing wrong?
The monthly MIP isn't always the worst thing in the world, but you don't want to keep it forever. Remember, you're just using the FHA loan to take advantage of a low down payment. Then, when you build up 20% equity, refinance into a Conventional loan and the mortgage insurance disappears. What's the purchase price? You'll want to look at your cap rate (annual net income/property value). A normal cap rate is between 4-10%. So, if you cash flow $400/mo and your property value is $100,000, then your cap rate is 4.80%. Also, $400/mo is only your realized gain. Don't forget that you have 3 sources of unrealized gain: (1) you're living rent free (2) your tenant is paying principal as a part of the mortgage payment which you will get when you sell (3) you're getting paid while holding onto an appreciating asset on average growing at 3%/yr.
@@WinTheHouseYouLove Thank you for responding and for the great content! Purchase price is around 320,000 with taxes averaging 8,000/yr. This would be my first investment and I'm ready to go head on but trying to prepare as much as possible. Just got pre-qualified!
@@WinTheHouseYouLove Can i use conventional loan? since conventional loan also has an advantage of low down payment like 3% right? So what's the benefit of going FHA if i have good credit score and income? Great video by the way
Question man! So let’s say Ives lived in this primary home for about 5 years and now I’m trying to refinance it and put tenants could I use that refinance money to put 3.5% down on a triplex? And live in one doubles for a year and do it again? With that being say I would have 4 tenant 1 from the primary home that I’ve refinance and 3 from the triplex I’ve built on a fha loan?
That's difficult! You'll want to see if you can get approved for more. You could possibly see if you could use rental income to offset the mortgage payment or add a co-borrower on the loan. Also, you might consider buying a single-family home and then renting it out after a year.
Can I refi my FHA mortgage to conventional after 20% paid off mortgage then take equity from home via CaSH/heloc for 2nd home for primary residence using an FHA loan and rent out the 1st home for income that was refied into conventional loan?
Kyle Seagraves - Mortgage Advisor I’m pretty young and looking to get into real estate investment as early as possible after I get my degree, so naturally I have a lot of questions. I’d like to see a video covering the process of refinancing a home initially purchased using a FHA loan. Also, would you consider doing brief housing market reports on major cities around the US? I’m interested in learning about Austin, TX and whether or not I should be looking to buy a home there within the next couple of years. Thanks again!
Thanks for the personalized video, I really appreciate it. I can definitely see this channel growing rapidly. Keep up the great work man, I’m excited to see more.👌🏽
Hi, I just watched your video on FHA Loan. Can u help me get a 4-unit multi-family property in Houston Texas using the FHA 203K loan as a primary residence?
@Cam Christian is it better to buy the property with the larger down payment to avoid mortgage insurance in every instance if you have the money for it?
Kyle, I currently have a home with an fha loan in NY and I will be relocating to Florida for my job at the end of the year. I am looking to purchase a second home with an fha loan, but I’m worried that I won’t get approved because of the debt to income ratio between both of the mortgages.
Thanks for commenting! To see if you can qualify for a loan, you'll want to reach out to a loan officer who can help. You can click Apply on my website (www.winthehouseyoulove.com/) to be connected with a loan officer I trust.
Great video! I'm looking to get into investing with little money down. Where can I find fha properties? If I'm looking at all the homes for sale, how would I know which one we would qualify?
Hey, great video, thanks a lot. I really like the background design there is great feng shui. So I don’t show a lot of income on my tax returns because I’m self-employed, how difficult will it be to refinance if I get a cosigner and how’s that for a year, have 25 to 50% equity? I basically just want to be able to refinance and repeat this process once a year and I’m hoping that the equity I have in the home plus the income will help me refinance, how do I know if this will work? I’m thinking about asking several banks
Thanks so much! If your co-borrower has good income, it's not too difficult to refinance with a co-borrower. You usually will need about 25% equity to repeat the process with another FHA loan.
If you were do a FHA house hack that needs renovation, can you do the renovations and after a couple years, it could hypothetically be appraised for 25% more than what you paid for it? In other words, the ARV should be at least 25% greater than what you paid in order for you to be able to refinance after 1 to 2 years? Did I get that right?
Still depends on you. BUT, it is wise to consider hiring a property manager if: You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you're likely to benefit from a management company. You don't live near your rental property. :)
Love your videos by the way but anyway you look so familiar like the way you talk and the way you look when you talk is just like this actor I can’t seem to figure out but if uou know like you get it all the time please tell me who so I can move on from this
Yes they do! FHA wants to see 2 months of bank statements before closing to verify (1) the down payment and closing cost money and (2) reserves available after closing. Down payment and closing cost money HAS to be liquid. But, reserve money can be illiquid in the form of a retirement account like an IRA or 401k.
One question i have is for those who have gone to buy a house, how was the process when you decided to buy other fha homes after the 12 months, dont you get issues with the debt to income ration monthly during process?? Please explain how does that work, like can you buy 10 houses in 10 years by only making 100k a year??
So you’re basically not profiting off the duplex at all? Since the renter is paying off the mortgage and you’re living there for free? Lol how do you have cash flow from that
Oh you're absolutely profiting. Duplexes usually don't have high net cash flow at the start since you're living in the property. However, you live for free, which increases your cash flow by whatever it would have cost to live. For instance, if it would have cost you $1,000 on the mortgage, someone paying that off mean you have positive $1,000 monthly cash flow on your personal budget. Most of the profit you're gaining in an owner-occupied investment is cash flow from decreased housing expense and unrealized gain in paying off the loan and gaining appreciation. Then, when you move out, you get a higher net cash flow as gross revenue increases.
At closing, you'll have to sign a document certifying you'll live in the property (usually for a year). I'm not aware of all the technology that could be used in the event of an audit. But, loans get audited for quality very frequently by GSEs or HUD. (This is because the 2008 house crash was caused by poor-performing and dishonest loans) Even something as simple as your mailing address or registered address changing to a different property other than the one you signed as your primary residence could cause an auditor to look closer and investigate mortgage/occupancy fraud.
Hey This was an amazing video it truly was! One question, is it possible to buy the house again after a year under lets say an LLC with a conventional loan? And if so do you need to pay a down payment even tho it is my house im buying from myself?
Hey I have a question. So i'm 20 and have 25k saved and I live with my parents for free, and I want to continue to live with them and buy a property to rent out what loan do I have to get? or should I buy a house and just pay 12 months mortgage then rent it out?
Either works. If you purchase it outright as an investment, you'll need 15% down. If you purchase it to live in it for a year, you'd only need 3% down.
I have contacted a mortgage adviser on hacking. I did mention to the adviser that I intend to use TSAHC for down payment and closing assistance. The adviser informed me TSAHC-FHA does not allow 4 units, only single family. Told the adviser I was surprised. Please let me know your views and if you have anyone I can contact in DFW area.
I’m not familar with TSAHC since I’m in OH, but usually down payment assistance programs can be super strict. Shoot me an email and I can connect you with a solid broker in TX
Mr Win The House You Love- Hi I have a question. Is all this still possible to do with this whole pandemic going on? I would need to start saving for at least 1 year in order to build a cash cushion along with a down payment for an fha loan. But im worried this pandemic is going to make this impossible? Any advice from you or others on this would be highly appreciated
Thinking of buying my first single family home just a 3 bedroom 2 bath house with an fha. If I live in it for a year then move and buy another property and begin to rent that house out. Is that acceptable as long as I lived in it for a year?
Let's say you buy a primary residence or an investment property with FHA. I know there's a requirement to live in the property for the a year but what if the home or the only available unit isn't liveable yet then what do you do? Not Liveable as in you need new everything and nothing up to your standards of living.
If it's a normal FHA loan, you have to move in within 60 days. If it's an FHA 203k, you can wait until repairs are completed (which is allowed up to 6 months)
my question is if you get an fha loan for a single family, and after living in it for a year you decide to refinance to a conventional loan, are you now able to use it as a fully operating investment property? since it's not under and fha loan anymore?
Yes, IF you meet the equity requirements found here: singlefamily.fanniemae.com/media/20786/display It would actually be easier to just keep the FHA loan. After a year you can use it as an investment property. Then just purchase a new home with a Conventional loan.
This was actually my plan for my next rental but first multi family. I plan to buy a 4 family and live in one of the units. However I was not aware of the 25% equity. Is that before I could move or before I could use another FHA loan?
Thank you, much! I’m looking at applying for a conventional loan next year as my first mortgage instead of the FHA, but am curious - if I want to buy an investment property before my primary residence, do you still need 20% down? Also, does the 25% rule apply to conventional loans as well? Thanks, again!
@@WinTheHouseYouLove ohh, ok. That’s not as bad as 20, haha (though not as nice as 5). I think you mentioned needing to build up 25% equity in an FHA home funded as a primary residence before renting it out and buying a new house. Is it the same for conventional?
Here's everything you need to know about FHA loans so you can make sure you don't run into any issues when you're ready to qualify → ua-cam.com/video/S-v9ZxJevfo/v-deo.html
Do you have to stay living in the property until you hit the 25% equity mark, or are you able to move out after a year? Thank you for all you helpful information!!!
Mannnn....this was really informative between you and BiggerPockets I’m learning a lot. Thank you, keep it up.
Thank you so much!! Best of luck in your investing journey!
Did you try to house hack?
Personal Notez:
- after one year if you have 25% equity in the property you are eligible for another FHA loan and you can repeat the process
- lenders will probably ask for reserves, 3-6 months of mo/ mort payments
- FHA requirement you need to live there for a year otherwise you might get occupancy fraud
- after a year see if you can get a refinance into a conventional loan. That way you can drop off some mortgage payment
Thanks for watching. :)
Man, love the channel! :) My wife and I are blind and are buying our first house, and we live in a sellers market which has always sparked our interest as we move up the socioeconomic ladder. Just found you the other day by accident, youtube suggested you after watching a few related vids. Super professional, accurate, and informative. Also straight to the point with swag. :)
Thank you so so much! And congratulations on the new home!
What can I work on to make the videos more accessible?
@@WinTheHouseYouLove hey thanks a million for taking accessibility into consideration. Just keep being thorough and. You're doing a great job being accessible
Love the clear info and lack of "I turned 5$ into 500k in 30 minutes by doing *this*" BS you see all over youtube. Subscribed!
Excellent advice. I'm encouraging my brother to save for his first investment[so he can have tenants to help pay the mortgage]. In Boston prices are high but there's always the opportunity of you are ready and well informed. In already a landlord. It's not easy, but I'm glad the investment is providing dividends.
Thanks! That's a great plan!
Thank you so much. I’ve been saving up to purchase my first investment property. I have over 20k saved already, I was thinking I need at least 20 more K’s to qualify for a down payment. Thank god I came across your video🙏🏾(I just subscribed)
Thank you so much for watching!! :)
Great Video ! My wife and I are learning everything we can now to hopefully invest in our first home sometime next year. We are in NYC so the cost of entry is extremely high.
Thanks!! Great plan!
Thank you for sharing the knowledge. I have listened to many channels and yours is one of the most valuable channels.
Thanks so much!
I love all your videos, so educational! I wish I found you a longggg time ago. I’m 35 and looking to purchase my first home soon.
Thank you so much!! I'm glad you're here :)
Did you follow through with it?
do you love me too?
Super helpful video! One thing I noticed though - Is you actually can house hack with a single family home! :) There many options such as rent by the room and subdividing the house itself to allow for tenants under your same roof
You can do that as well :)
This answered a lot my questions, Thank You!
You're welcome, thanks for watching!
Hi Kyle! I have a suggestion for content: multi family house hacking 3-4 units with student loan debt.
Brilliant suggestion!
I have added you to my go to financial channels with Dave Ramsey and Graham Stephan
Wow, thanks! Those two are legends!!
@@WinTheHouseYouLove Straightforward, helpful, accurate advice without any BS. What's not to like?
When you move out you gotta change homeowners insurance to commercial
I’m going to be a first time home buyer Looking to purchase a property then eventually looking to purchase a renters property. Could you make a video or direct me to a video on what to expect and what to do to purchase a home? Thank you I recently subscribed, very good channel
Awesome!! Sure thing:
Fully Prepare To Buy A House (Step By Step Guide): ua-cam.com/video/ujc7775SDEk/v-deo.html
What To Expect During The Mortgage Process: ua-cam.com/video/engzD-d8IOY/v-deo.html
Best video ever on this type of information.
Thanks!!
This was very informative for someone like myself, who is considering doing this as my first property! Thank you- you got a new subscriber!
I'm so glad to help! Thanks for watching and subscribing!
@@WinTheHouseYouLove can you build a multifamily home with a construction loan
Thank you. You're a well spoken genius.
I appreciate that!
Love your videos mate - but just a minor production tip (which you might've already received): small patterns on shirts, especially eccentric ones like this video, give the camera a really hard time. I'd recommend just a plain color or something with large patterns. Then you won't have moire like you can see in this video. Cheers!
Thanks for the tip! Try checking my recent videos out, I am now wearing plain shirt. :) Enjoy watching! :)
This video was everything!!! Thanks Kyle
Glad to help!
My FHA loan for a 3 unit just got denied a day before closing. FHA said that the rent collected from the 3 unites would not cover the mortagage amount. They want the home to pay itself to qualify??? why is my income not being taken into account? plus they stemitaed the rent from two unites way below market. :(
Hello, new follower here! I know this video is a bit older. Will someone know if this also applies for Room hacking?
Would it be possible to purchase a home with FHA loan and sell it right away or after living in it for 90 days? Currently looking to build a new home via FHA loan and then sell it due to the cheap price my contractor gave me and the resale price of homes in my area.
It's possible, but your lender is most likely going to get charged a penalty. This is called an Early Pay Off. It doesn't harm you in any way, but as lenders I don't like EPOs because they cost me money.
I'd at least talk with your lender about it out of respect for them.
If you already have a home with lots of equity but don't have enough for a down payment of
20% or more would an FHA loan be a good way to go?
I realize I would have to rent out my current home and move into a multi unit.
After a year of living in the property, how do you move the property to your LLC?
You would contact your lender and let them know what you would like to do. They will either put the title in the LLC’s name and you will be obligated on the mortgage, or, you might have to refinance to have the LLC as the borrower on the mortgage.
This is powerful and very important. 😳👍🏽👍🏽👍🏽😊 Thank you
Glad it was helpful!
Yess!! Thank you!! Inspiring me and educating me so much!
You are so welcome!
Why do you need 25% before you can move into your next fha property? For some reason i thought after one year of living in the house you could go and do it again...
FHA wants you to use their insured loans to only buy a primary residence. The more equity you have in a home, the less risky it is to them, so they're more willing to lend to you again if they know their first loan they gave doesn't have as much risk.
@@WinTheHouseYouLove is this just to get another fha loan for another location? I was planning on get a place for a couple of years, renting it out when I leave and refinancing that fha to a conventional if it seemed reasonable given rates and such and buying using a conventional at my new location (single family residence)
I subscribed to your channel after watched first two minutes of this video.
Thanks so much!!
I clicked this video by accident, but the information here is really fucking good! Love the sound quality too
Haha well I'm glad you're here!
How can I find I realtor that is familiar with house hacking?
If you did this house hack on three houses and lived in one of them permanently, how would you protect your other two assets? Do you transfer them to an LLC?
FHA doesn’t allow you to transfer a deed into an LLC
Can you gget an fha loan if the other apartments are rented out to your LLC. In example I build a recording studio on one floor and rent it out to my LLC and then live on the other floor
Thank you for your value. Question, can I house hack with FHA on a construction to perm loan on a 4plex? Also, Can you give me an example of what you mean when you say "once you hit 25% in equity" are you saying once 25% of the loan is payed?
Thank so much for all this information, I guess I have to look for a job around the area where you moving to...?
Thank you so much for watching!! :) I'm not sure what you mean by work on the area
@9:41 so does that mean if i hit 25% mark i dont ve to sell the 1st property ! & still i can get another property with applying again to FHA ? Still
Or i must sell the 1st one to apply for the 2nd one via FHA
I would love to see a video about how to choose a good investment property. Is location key?
Great suggestion!! Location is always key :)
i know this might be a odd question....
if i apply for a fha home loan and buy a fixer upper can i use some of that home loan to fix up my new house or do i have to use my own money to fix up my new home???
Just called an officer and found out that Quicken Loans do not lend to borrowers who desire to buy a fourplex under FHA. They can lend if it is conventional. I also found out that Supreme Lending, Certainty Home Loans, Bank of America do not lend under FHA for a fourplex.
That's weird! As long as you're living in one, you're perfectly fine according to FHA.
They must have overlays.
I work with Motto Mortgage. Call a local office and they'll take care of you.
You are right. The guidelines under FHA are clear. However these lenders have added their own requirements, overlays, just like they may change the guidelines on credit score under FHA from say 580 to 620. Similarly, they may have additional requirements on reserves. For example, although FHA says two months reserves, most of them ask for four to six months reserves. But that was not weird enough until I came across one of the lenders who was more weird than all the others.. One of these lenders actually used "projected income" on a multifamily property rent I was interested in to disqualify me.The lender said "if we approve you based on these rents, your income will be above the limits allowed".
Will give them a call.
I’m doing a bit of research for potentially getting into an investment property through the process described in video. It’s great to know the pros of getting into this type of investing but one search on Reddit and you can see the many real world landlords advising of the cons like bad tenants, costly repairs, maint, etc. I think it would be wise to inform your audience about the cons to getting into this sort of investment.
Thanks! Great suggestion!! I will add it to my video ideas list :)
That's with any real estate investment lol.
How do you report the earnings to the IRS?
ok but what is the benefit of FHA vs Convention where you can do the same thing with convention with 3% down (or 5 if you can afford). With current cheap interest you don't really want to refinance in the future so conventional is better and you can avoid PMI right?
Thanks Kyle for all the great contents you’ve been given us. It’s been a little over a year since I purchased a home with a va loan and I would like to rent it out and buy a new one. Should I consider va, fha, or conventional? Credit score is right around 650.
Thanks for watching!
Personally, I'd use a VA loan
Very good info and advice love this video 👍🏽
Thanks for watching!
So I have a 3 family dwelling with the fha loan and would like a purchase again, I didn’t know you can use fha loan more than once if you plan to live on the property for a least 1 year. I thought it was only for first time buyers
Getting an fha loan a 2nd time can be tricky tho, u can't just get another one so easily
There are certain criteria you have to hit for sure
Very exciting to have this knowledge. Thank you.
Glad it was helpful!
Can or should you house hack with a conventional loan?
How do you make 25% of equity in one year? That sound not doable.
For most, one year is too difficult. It may take longer, but one year is the minimum - Kyle Seagraves winthehouseyoulove.com
Does anyone know if Down Payment Assistance can be used in this case? An fha for multifamily units?
Kyle, I have a question. Can I get a FHA if I build my own quadplex? The market on a quadplex is too high. I’d rather build and get it a lot cheaper.
To my knowledge, FHA construction only works for 1-unit
do they allow properties that have 2 homes on 1 lot? or do they have to have shared walls like apartment? thank you enjoying your videos and your personality.
Yes, they do allow that, just make sure that you will live in one of the homes. Best of luck!
Looking to buy a 2 unit home with basement with FHA loan, it's true the MIP is a cash flow killer. If I'm investing 25K after. Closing costs and I'm cash flowing only 400/month... It would take me 5 years to break even. What am I doing wrong?
The monthly MIP isn't always the worst thing in the world, but you don't want to keep it forever. Remember, you're just using the FHA loan to take advantage of a low down payment. Then, when you build up 20% equity, refinance into a Conventional loan and the mortgage insurance disappears.
What's the purchase price? You'll want to look at your cap rate (annual net income/property value). A normal cap rate is between 4-10%.
So, if you cash flow $400/mo and your property value is $100,000, then your cap rate is 4.80%.
Also, $400/mo is only your realized gain. Don't forget that you have 3 sources of unrealized gain: (1) you're living rent free (2) your tenant is paying principal as a part of the mortgage payment which you will get when you sell (3) you're getting paid while holding onto an appreciating asset on average growing at 3%/yr.
@@WinTheHouseYouLove Thank you for responding and for the great content! Purchase price is around 320,000 with taxes averaging 8,000/yr. This would be my first investment and I'm ready to go head on but trying to prepare as much as possible. Just got pre-qualified!
@@WinTheHouseYouLove Can i use conventional loan? since conventional loan also has an advantage of low down payment like 3% right? So what's the benefit of going FHA if i have good credit score and income? Great video by the way
Thank you for this video 🙏🏼
Can I live with a roommate on the side of the duplex I’m going to be living in?
You sure can
I thought you could drop PMI with the FHA loan once you reach 25% equity?
so i can get fha loan, live in one unit while renting out the others and then after a while move out? this is one of my biggest dreams!!!
That's a nice plan! Best of luck!
Question man! So let’s say Ives lived in this primary home for about 5 years and now I’m trying to refinance it and put tenants could I use that refinance money to put 3.5% down on a triplex? And live in one doubles for a year and do it again? With that being say I would have 4 tenant 1 from the primary home that I’ve refinance and 3 from the triplex I’ve built on a fha loan?
How can I buy a multifamily when the amount I was approved for is less than the units on the market. One problem I am running into : alot are vacant.
That's difficult! You'll want to see if you can get approved for more. You could possibly see if you could use rental income to offset the mortgage payment or add a co-borrower on the loan. Also, you might consider buying a single-family home and then renting it out after a year.
Thank you for the knowledge 🙏
You bet!
When I got my fha loan, I was specifically told you could not use a fha for multi-family.
As long as you live in one of the units you can
how many times can you repeat this process until you can't use the FHA loan anymore?
Following..
As long as you refinance the intial into a conventional, unlimited.
Win The House You Love okay, thanks
Can I refi my FHA mortgage to conventional after 20% paid off mortgage then take equity from home via CaSH/heloc for 2nd home for primary residence using an FHA loan and rent out the 1st home for income that was refied into conventional loan?
You absolutely can!
Subbed. Great video man!
Thanks so much, Siman! Glad you enjoyed. Any videos topics I can make that would be helpful for you?
Kyle Seagraves - Mortgage Advisor I’m pretty young and looking to get into real estate investment as early as possible after I get my degree, so naturally I have a lot of questions. I’d like to see a video covering the process of refinancing a home initially purchased using a FHA loan.
Also, would you consider doing brief housing market reports on major cities around the US? I’m interested in learning about Austin, TX and whether or not I should be looking to buy a home there within the next couple of years. Thanks again!
@@Wawaloo17 Awesome, here's a personalized video reply for you: soapbox.wistia.com/videos/6J4hhfS5XG
I hope I pronounced your name correctly!
Thanks for the personalized video, I really appreciate it. I can definitely see this channel growing rapidly. Keep up the great work man, I’m excited to see more.👌🏽
Hi, I just watched your video on FHA Loan. Can u help me get a 4-unit multi-family property in Houston Texas using the FHA 203K loan as a primary residence?
@Cam Christian is it better to buy the property with the larger down payment to avoid mortgage insurance in every instance if you have the money for it?
You'd want to compare both scenarios side by side
Kyle, I currently have a home with an fha loan in NY and I will be relocating to Florida for my job at the end of the year. I am looking to purchase a second home with an fha loan, but I’m worried that I won’t get approved because of the debt to income ratio between both of the mortgages.
Thanks for commenting! To see if you can qualify for a loan, you'll want to reach out to a loan officer who can help. You can click Apply on my website (www.winthehouseyoulove.com/) to be connected with a loan officer I trust.
Great video! I'm looking to get into investing with little money down. Where can I find fha properties? If I'm looking at all the homes for sale, how would I know which one we would qualify?
Thanks! There isn't a list, but you can always ask the listing agent if they think the condition would pass an FHA appraisal.
Hey, great video, thanks a lot. I really like the background design there is great feng shui. So I don’t show a lot of income on my tax returns because I’m self-employed, how difficult will it be to refinance if I get a cosigner and how’s that for a year, have 25 to 50% equity? I basically just want to be able to refinance and repeat this process once a year and I’m hoping that the equity I have in the home plus the income will help me refinance, how do I know if this will work? I’m thinking about asking several banks
Thanks so much!
If your co-borrower has good income, it's not too difficult to refinance with a co-borrower. You usually will need about 25% equity to repeat the process with another FHA loan.
If you were do a FHA house hack that needs renovation, can you do the renovations and after a couple years, it could hypothetically be appraised for 25% more than what you paid for it?
In other words, the ARV should be at least 25% greater than what you paid in order for you to be able to refinance after 1 to 2 years? Did I get that right?
Yep, you'll need 25% equity to refi
2:58 lets say you have a duplex. You rent out one unit and live in the other one. Could you have a roommate in the same unit you live in?
Yep
Can you get a property manager even if you live in the property?
Still depends on you. BUT, it is wise to consider hiring a property manager if: You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you're likely to benefit from a management company. You don't live near your rental property. :)
Great video, thank you!
You're welcome! Thanks for watching!
Love your videos by the way but anyway you look so familiar like the way you talk and the way you look when you talk is just like this actor I can’t seem to figure out but if uou know like you get it all the time please tell me who so I can move on from this
Haha I'm not sure!
Thank u very good information..justo lo que quería saber 👍🏼👍🏼👍🏼
Glad to help!
Good video. Thanks for the clear explanation. Does FHA require the buyer to show proof of reserve money on the multifamily before closing?
Yes they do! FHA wants to see 2 months of bank statements before closing to verify (1) the down payment and closing cost money and (2) reserves available after closing. Down payment and closing cost money HAS to be liquid. But, reserve money can be illiquid in the form of a retirement account like an IRA or 401k.
@@WinTheHouseYouLove Thanks. Interested in hacking. Working on raising the 3 months reserve money. Based in Tx.
John options how’s it going now?
@@kamilsultan1637 Blessed. What's up?
@@johnoptions9192 what part of tx
One question i have is for those who have gone to buy a house, how was the process when you decided to buy other fha homes after the 12 months, dont you get issues with the debt to income ration monthly during process?? Please explain how does that work, like can you buy 10 houses in 10 years by only making 100k a year??
There are some channels on housing hacking that might help
So you’re basically not profiting off the duplex at all? Since the renter is paying off the mortgage and you’re living there for free? Lol how do you have cash flow from that
Oh you're absolutely profiting. Duplexes usually don't have high net cash flow at the start since you're living in the property. However, you live for free, which increases your cash flow by whatever it would have cost to live. For instance, if it would have cost you $1,000 on the mortgage, someone paying that off mean you have positive $1,000 monthly cash flow on your personal budget. Most of the profit you're gaining in an owner-occupied investment is cash flow from decreased housing expense and unrealized gain in paying off the loan and gaining appreciation. Then, when you move out, you get a higher net cash flow as gross revenue increases.
How do they confirm that you are living in one of the units? Do they really check?
At closing, you'll have to sign a document certifying you'll live in the property (usually for a year).
I'm not aware of all the technology that could be used in the event of an audit. But, loans get audited for quality very frequently by GSEs or HUD. (This is because the 2008 house crash was caused by poor-performing and dishonest loans)
Even something as simple as your mailing address or registered address changing to a different property other than the one you signed as your primary residence could cause an auditor to look closer and investigate mortgage/occupancy fraud.
And do you also need a 500 credit score minimum ? To even get started with a FHA loan?
Yes
Hey This was an amazing video it truly was! One question, is it possible to buy the house again after a year under lets say an LLC with a conventional loan? And if so do you need to pay a down payment even tho it is my house im buying from myself?
Great question I also wanna know the answe to. The LLC provided u more protection and some other perks
Can u explain on what LLC is and why it’s important in this circumstance?
Hey I have a question. So i'm 20 and have 25k saved and I live with my parents for free, and I want to continue to live with them and buy a property to rent out what loan do I have to get? or should I buy a house and just pay 12 months mortgage then rent it out?
And I only wanna buy a single family home
Either works. If you purchase it outright as an investment, you'll need 15% down.
If you purchase it to live in it for a year, you'd only need 3% down.
I have contacted a mortgage adviser on hacking. I did mention to the adviser that I intend to use TSAHC for down payment and closing assistance. The adviser informed me TSAHC-FHA does not allow 4 units, only single family. Told the adviser I was surprised. Please let me know your views and if you have anyone I can contact in DFW area.
I’m not familar with TSAHC since I’m in OH, but usually down payment assistance programs can be super strict. Shoot me an email and I can connect you with a solid broker in TX
@@WinTheHouseYouLove tsahc.org Texas State Affordable Housing Corporation (TSAHC).
Hello,
What about a Single family unit?
Can you use an FHA and occupy one room and rent out the other rooms?
Yes
Mr Win The House You Love- Hi I have a question. Is all this still possible to do with this whole pandemic going on? I would need to start saving for at least 1 year in order to build a cash cushion along with a down payment for an fha loan. But im worried this pandemic is going to make this impossible? Any advice from you or others on this would be highly appreciated
It sure is possible :)
Can you use cash flow from the property that you want to purchase to help you qualify for your loan ?
75% yes
What's does "primary residency" mean? I work from home. Could I just go to that home and work 8 hours a day 5 days a week?
Hi! Primary residence is your main residence, you have to live in the home as if it's your HQ. :)
Thanks for this!
My pleasure!
Very helpful, thank you sir.
Glad it helped
Thinking of buying my first single family home just a 3 bedroom 2 bath house with an fha. If I live in it for a year then move and buy another property and begin to rent that house out. Is that acceptable as long as I lived in it for a year?
Hi! Some people do that.. it's totally up to you.
You cant have more than one FHA loan going at a time..You would have to pay that mortgage off first..
Yes you can → ua-cam.com/video/WSnAAJ2LKcg/v-deo.html
Are there some lenders that would do 20% instead of 25% equity for a quadplex? Our refi is gonna be close I think around 20-25%
Unfortunately no, it's an FHA guidelines
You would have to move 100 miles away and it would have to be work related in order to get the 2nd FHA loan right?
I have a video on this :)
ua-cam.com/video/WSnAAJ2LKcg/v-deo.html
So is it illegal to buy a house with an FHA loan, stay there for a year, then rent it out to someone else ?
Nope, tons of people do it
Can you use an FHA loan to purchase a mobile home to place on rural land? Or does the FHA loan only apply to a traditional house?
I believe there are some programs that would allow this, but I'm not too familiar
Let's say you buy a primary residence or an investment property with FHA. I know there's a requirement to live in the property for the a year but what if the home or the only available unit isn't liveable yet then what do you do? Not Liveable as in you need new everything and nothing up to your standards of living.
If it's a normal FHA loan, you have to move in within 60 days. If it's an FHA 203k, you can wait until repairs are completed (which is allowed up to 6 months)
my question is if you get an fha loan for a single family, and after living in it for a year you decide to refinance to a conventional loan, are you now able to use it as a fully operating investment property? since it's not under and fha loan anymore?
Yes, IF you meet the equity requirements found here: singlefamily.fanniemae.com/media/20786/display
It would actually be easier to just keep the FHA loan. After a year you can use it as an investment property. Then just purchase a new home with a Conventional loan.
This was actually my plan for my next rental but first multi family. I plan to buy a 4 family and live in one of the units. However I was not aware of the 25% equity. Is that before I could move or before I could use another FHA loan?
Before you can use another FHA loan
Are there any rules against flipping with a conventional loan? Cant seem to find a video on that
No rules that I am aware of
Thank you, much! I’m looking at applying for a conventional loan next year as my first mortgage instead of the FHA, but am curious - if I want to buy an investment property before my primary residence, do you still need 20% down? Also, does the 25% rule apply to conventional loans as well? Thanks, again!
15% is actually the minimum down payment for an investment property :)
@@WinTheHouseYouLove ohh, ok. That’s not as bad as 20, haha (though not as nice as 5). I think you mentioned needing to build up 25% equity in an FHA home funded as a primary residence before renting it out and buying a new house. Is it the same for conventional?
You can get more than one fha loan?
ua-cam.com/video/WSnAAJ2LKcg/v-deo.html