Real Estate Investor Financing Through HUD

A product that investors could really use to their advantage may finally be here. As most of you real estate investors know, 20% down has been the norm in this market as it is virtually impossible to find mortgage insurance (MI) for investor properties. Well for a limited time, HUD REO and HUD foreclosures are being opened up for investors to use FHA financing for a purchase.

What does this mean for people who want to buy investor properties using FHA financing? How about pretty much the same thing owner occupants can use with the 3.5% down payment with no adjustments to the rate for investor properties? Remember FHA has no limit on the number of properties you can own but a borrower does have to qualify using traditional guidelines. Imagine the advantage of having an owner occupant rate for an investment property.

Again, this program is only for HUD owned homes and you must use a real estate agent who is approved with HUD to submit these offers. The offer must stipulate the use of this program.

This is good news for investors as well as homeowners. If investors can purchase some of the foreclosed homes, it will more quickly get them off the market, reducing overall supply and hopefully minimizing their affect on the values of non- foreclosure listings and appraisals.