Owner Occupants vs Landlords %

[Bruce Lynn]

Are there any FHA/VA or even conventional guidelines for landlord vs owner/occupant % in townhome communities. I remember at one time it seemed FHA guidelines for condos were no more than 50% owned by investors and no more than 20% owned by one investor. I haven't heard or seen these numbers or % in years. I also remember different developments were "FHA" approved. That must hav been 20 years ago now. Now I understand even if the building or development is not on the approved list the lender can get "spot" approval. Is that still the case?

[Doug Smith]

Quote from @Doug Smith:

Hi Bruce, I own a mortgage company, so I should be able to answer your questions. FHA still limits rentals to no more than 50% of units—though that drops to 65% investor-owned in rare cases—and no single investor may own more than 10%. Spot (Single-Unit) approvals have been allowed since the 2019 FHA handbook update, letting lenders get an approval just for your unit even if the condo isn't whole‑project approved. VA projects require about 50–51% owner occupancy, and conventional lenders typically also insist on at least 50%, often with a 25% cap on ownership by any one investor in larger buildings. There are some creative "non-QM" programs that might also be available to you. Does that cover what you were asking? I with you well in your endeavors.

 ...I just saw the word "townhome" in your Q. I responded for condos. I whiffed on that. My bad