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Buying investment property with FHA financing

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Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I was just told by a lender that anyone can buy up to 3 investment properties, non-owner occupied, with FHA financing.

I didn't know this. Anyone else here aware of this?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Didn't know about the 'up to3 :? '... and
I think that there was a temporary moratoium on funding for SFD's.

I beleive that it is multi-family only...
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
I have never heard that any investment property could be financed FHA without owner occupancy. This is news to me, but I never actually admit to knowing everything. i just insinuate it.
 

EDWARD BERRY

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Yes they did, about 15 years ago-

If I remember it was like the 203-k program.

It did not take long for the crooks back East to ruin it.

Ed in the sticks.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
FHA had non-owner occupied programs during the 80s, haven't seen it here in modern times.
 

Dorrie Klatt

Freshman Member
Joined
Mar 7, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Hi Pam-

I am waiting for an answer from REAC for that exact same question. In the 4150.2 handbook under the Income Approach, section 4-7, page 4-13, they talk about "owner occupied" in 2-4 unit properties, but I can't find anything in black and white :) telling us that it must be owner occupied to qualify for FHA financing.

I'll let you know what they say once I get an answer!

Dorrie
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Well.... I pulled up the recorded mortgage for this property. It is FHA and the address of the borrower is not only not the subject, the borrower/purchaser lives in a different state.

I will look forward to the answer you get from REAC.
 

Dorrie Klatt

Freshman Member
Joined
Mar 7, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Pam-

I will do that. I seem to also remember something about the buyer having to occupy the property for a minimum of one year..........but I'm not sure if where I saw/heard that at........hopefully the REAC answer will clarify that also....... (as much as they clarify anything :roll: !)

Dorrie
 

Dorrie Klatt

Freshman Member
Joined
Mar 7, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Pamela -

The e-mail response I got from REAC was to call the HUD Homeownership Center/Underwriting Division at 800-440-8647. I did so and also called the Technical Assistance Division and both answers were that one of the units MUST BE owner occupied and listed as their primary residence to qualify for FHA financing. I'm sure buyers have way around that, but that is the ruling.

Sounds like the lender you referenced needs to talk to an FHA underwriter...........

Hope this helps !! :)

Dorrie
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Per the Denver Homeownership Office, in a similar situation they will send a HUD employee out to verify occupancy and if it isn't the borrower they will call the loan.
 
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