Archive for December 1st, 2011
December 1st, 2011 | 
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Seven Unit Limitation:
HUD regulations and policies state that a real estate owner should not be allowed to accumulate FHA insured properties that constitute a multifamily project. In general, a borrower may not have an interest in more than seven rental units within an immediate area. HUD defines an immediate area as properties being within a two block radius.
The seven unit limitation does not apply if the neighborhood has been targeted by a State or local government for redevelopment. The State or local government has submitted a plan to HUD that defines the area, the extent and type of redevelopment in the target area. A restriction may still be imposed within a redevelopment area to prevent undesirable concentrations of units under a single or group ownership. HUD will decide that the seven unit limit is inapplicable only if the real estate owner will own no more than 10 percent of the housing units in the designated redevelopment area or sub-area and the real estate owner has no more than eight units on adjacent lots. Read the rest of this entry »
Posted in financing, investment properties | 
Tags: fha 203k loans, hud regulations, investment property | 
1 Comment »Financing Investment Property Second Home or Rental Income
True Paradise Is When You Own It
Financing the purchase of an investment property is a little different from a home mortgage. To a bank, there is higher risk associated with second homes and properties purchased for rental income. Statistics show that personal residences are better maintained than properties that are not permanently occupied by the owner. When the owner of an investment property suffers a financial setback lenders believe that there is a greater chance of the owner disposing of the property. Read the rest of this entry »
Posted in financing, investment properties, mortgages | Tags: investment property, real estate investors | Comments Closed