If you compare FHA with Conv for a SFR, FHA allows for a non occuping borrower, conventional doesn't (this is big).

So, the following month when the borrower defaults, that is a whole new case not covered by the dismissal with prejudice.

Selling Guide Fannie Mae Single Family Part B, Origination Through Closing Subpart 3, Underwriting Borrowers Chapter 5, Credit Assessment, Traditional Credit History pages 463, 465-466 https://www.fanniemae.com/content/guide/sel011713.pdfThere are what they call "lender overlays" which banks and lenders will tighten up the Fannie/Freddie guidelines to improve their overall performance.

I've seen it far too often throughout the financial crisis, reviewing loans/borrowers on bank's books..

They have their properties scattered about in various holding companies like AMH 2014-3 BORROWER LLC (296 units.)

as far if i choose to rent how do u determine the rent for a specific house and neighborhood and if i bought n held two properties for two years would i be able to borrow on those two properties to buy two more

Thx, both good complimentary borrower actions plans.

Having said that, personally, I would never make a business purpose loan secured by an OO property simply because I don't want the potential drama.To say it yet another way, if you make a loan secured by a rental property (for flip property) and the borrower uses the money to pay for his kids college education, that is not a business purpose loan even thought it was secured by a NOO property.

There is a short sale property I am interested in and would like to borrow 130,000 for purchase and renovation.

Within the loan guidelines the criteria will specifically call for a minimal contribution from the borrower.