hml owner occupied

[Naskat Williams]

i have found a gret reo for 50% arv that i want to offer all cash on, but the hml do not offer loans to owner occupants. i am preapproved for a fha 203k, but i don't have $10k to close. does it really matter if i live in it or not since i am going to refinance to home with another bank? what i use it to rehab the home (2ok in repairs) and than i had chaged my mind or couldn't sell it and decided to live in it? would it be penalities? is it not the same thing if i did a refi and rented it out?

[Jon Holdman]

Naskat,
Most HMLs are not interested in dealing with homeowners. With homeowners, there are emotions involved. With an investor, its all about the numbers. If an investment goes south, the HML expects you to sign a deed in lieu and move on. No debates. No "its my house". No BS. No "modification". No stories. No excuses.

You're buying a house, not investing. Buying a house is fine. But its not cheap. If you're pressed for cash, and it appears you are, renting is a better option. A house is a doo-dad that sucks cash out of your pocket. If you don't have the cash, rent.

Yes, there is a HUGE difference between "i had chaged my mind or couldn't sell it and decided to live in it". A fix-and-flipper would never change their mind and live in the property. They have their own house to live in. If they couldn't sell, they would either hand the house over to the HML, or they would refi and rent it out.

HMLs are for investors, not OOs. If you can't afford the $10K nut to buy this house, find a cheaper house.