Can a first time homebuyer by a house under a business name for the purpose of starting in real estate invest?

[danalandis]

[fazzz]

yes, you need to set up a trust. Is a good idea for any property that you purchase, for protection from law suits

[fire4511]

The real question is can you get financing for the property in a company name?

You can purchase the house in any name you want, as long as the mortgage company has no problem with you doing that.

[warren_zevon_1]

Yes, but you will be unable to take advantage of first time home buyer programs that require the home to be owner-occupied.

You will pay a much higher interest rate, and may be required to put down a much larger down payment.

[someonecanbme]

if you lose the business-you lose the home. Bad idea

[Loss Leader]

A house, just like anything else, can be purchased by any type of entity - person, corporation, LLC, LLP or anything else you can imagine. A business, just a plain d/b/a, cannot own anything. The owner of the business - individual or corporation - can.

There are only three problems to be aware of: First, while it doesn't matter who owns a house, it matters to the bank who is responsible to pay for the mortgage. A small corporation will not gnerally be allowed to get a mortgage without a personal guarantee from you as an individual. Second, investment properties get different mortgage rates than primary residences. That means you'll pay more to invest and not live in a house than to live in it. Third, investment properties are also treated differently for tax purposes than primary residences. You will pay a capital gains tax on all of the gains from the property whereas you would be able to exclude hundreds of thousands in gains from the sale of a primary residence.

Ask your accountant and real estate attorney for more information.

[mand]

You can buy a piece of property in any name you please, doesnt matter if this is your first time buiying a house or not.

While you wont be eligible for any state or federal first time homebuyer programs, you may be eligible for small business loans. (depends on your business)