this is question is about buying a house with FHA...?
my friend want me to buy a house using FHA, and after closing sale he wants to take over the house fix it and resell it,he says he is going to give me 10k,but I am wondring is good for me or bad since I am going to use my first time home buyer, are the IRS comming after me ...what is the catch on this one..no one will give you 10k free come on..thank you if you answer seriously
- GuitarGeorgeLv 61 decade agoFavorite Answer
Your friend wants you to scam the government with you taking all the risk and him taking none.
Is he going to sit in jail for you and pay your fines?
Also, flipping a house in this economy is a very risky gamble.
Better for you if you just say NO!
- 1 decade ago
The bottom line is FHA typicly finances homes that are in good repair. FHA also has a hard to get loan designed for homes that need repairs if you can prove the ability to perform. The most important thing to remember is you will have to pay capitol gains tax on the procedes or profit unless you sink the money back into a home of the same value or more. Your flirting with disaster letting someone walk away with money off that deal. I can tell your not geared for this without thouroughly edjucating your self . I wouldn,t let your friend teach you. make sure it comes from a disinterested party. Watch your back . hope this HELPEDSource(s): RE License
- 1 decade ago
This sounds like a potentially bad idea. If the home can't be sold then YOU are solely responsible for it if your name is the only name on the contract. Seeing that you only have one opportunity to be a first time home buyer if i were you I'd make sure this is the house that you'd want just in case it couldn't be re-sold quickly and that you yourself are able to make the payments.
- sensible_manLv 71 decade ago
Not a good idea. First, you will be claiming the house as your primary residence. This will not be true if you turn it over to your friend for renovation. If he messes the house up, you are still required to make the payments. Overall, he is free to walk away, and you are not.
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