2012 FHA loans for private investors?

Question

Can any of the current FHA (or USDA) loans be used by investors-not just owner occupants? How about any of their rehab loans?

J Scott · Answer

You get in trouble for mortgage fraud...

Marius P. · Answer

Hello,
What happens if I take FHA loan for primary residence and then sell house after few months.
Thank you

Chris Calabrese · Answer

I know we had and FNMA under contract in the fall, and we were getting a 10% down NOO loan at about 4.875%/30-year, but maybe it's gone up to 15% since then.  They were basically running about 1% higher than the equivalent owner-occupied loan.

Heather D. · Answer

Well that's not good...  they're going the wrong direction if they're at 15% for NOO! :)

J Scott · Answer

Used to be 10%, but I believe it's now 15% for NOO.

Heather D. · Answer

FNMA/Homepath requires only 10% down.  The best govt loan program for investors is for VA foreclosures.  But you have to get qualified through BOA before you can even put an offer in on a home.

VA terms for investors - 5% down, no MI, no appraisal fees, 3.5% fixed for 30 years and often 3% seller concessions on closing costs if requested.    Check out va.equator.com for properties in your area.

David Beard · Answer

FHA/HUD only lends to owner-occupants.  Homepath is a FNMA lending program, available for purchasing REO properties from FNMA, and some of these properties allow for rehab to be built into the loan.  The Homepath.com site will indicate which are eligible for a rehab loan.  FNMA and FHLMC are the two large govt conventional lenders, and both lend to NOO's on a much more restricted basis, which I think you probably already know.

Nathan Emmert · Answer

You can get Homepath loans as NOO.  I have heard the fees and interest rates are higher than conventional though.  If I remember right, it was about a 15% Down Payment for Single family, 20% for Duplex, and 25% for Tri or Quad.

Only certain houses would qualify for the rehab loans but those would really be the only reason to go Homepath, to be able to finance in repair costs.

Dan Krause · Answer

From what i can see the FHA 203k rehab loan is only available to non-profit investors. I dont know if this is true or not ?

2012 FHA loans for private investors?

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