I have heard of investors getting Fannie Mae loans, but I just thought these was for home owners. How do I go about getting a Fannie Mae loan for a house that I want to flip and what type of interest rate can I get with these loans? Do I have to keep the house for a certain amount of time? Any information would be greatly appreciated..
Fannie Mae (and Freddie Mac) buy "conventional" loans that conform to their rules. You don't really get a Fannie or Freddie loan. You get a conventional loan and Fannie or Freddie may buy it after you get it.
If you claim to be an owner occupant you will generally be expected to live there a year. Those are the interest rates you see advertised. For an investor, the rate will typically be 1/2 to 1 point higher. But, yes, these loans are available for investors.
However, they're not really intended for flipping. They're for long term holds. You may be able to get one and quickly resell the house, but the lender won't make much profit on the deal and may not fund you the next time around.
Jon Holdman, Flying Phoenix LLC
Fannie and Freddie recognize three types of occupancy: Primary, Secondary, and Investment. As long as the loan conformed with their occupancy-specific guidelines, they will purchase.
@Jon Holdman I agree, usually not feasible (and Non Owner Occupied needs more Downpayment in addition to the higher interest rate!)
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