Best ( cheapest ) way to purchase a REO

[Michael Dunn]

type property as an Investor for 2014 ?

I was thinking of purchasing as an O.O. , but It seems I will be able to come up with a bit more cash than I first thought, so I am now considering buying as an Investor

I want to be able to Flip houses ( for the time being ) vs purchase as a Rental, and am wondering which type of financing will allow me to purchase as an Investor , for the least amount of money down ..... HomePath, FHA or VA ?

From what I have read, HomePath is 10% down based on the purchase price, which is definitely cheaper than going with a Convential loan, which requires 20% . Is a FHA or VA 10% down as well?

Just needing some confirmation and or information on the current policies, regarding the various financing options, to purchase as an Investor

Thank you every one, I really appreciate it

[Justin E.]

Are you, or have you served in the military? You need to have done that for a VA loan, which is 0% down and no PMI. FHA you can get loans at 10% but have to pay PMI for the life of the loan (have to refinance or pay it off, it no longer goes away when you have the necessary equity in the property). Homepath investor loan is 10% down, no PMI.

[Rod Smith]

One more thing to keep in mind. All properties on the Homepath website are not automatically eligible for purchase with 10% down. The property must be one that is identified as eligible for a Homepath mortgage or a Homepath renovation mortgage(I think these require 15% down).

[Richelle T.]

Yup I'm thinking of using a Homepath for the same reason. There seem to only be a few homepath lenders per state though.

[Phil Z.]

If you want to flip the house, don't do an owner occupied required loan.

[Michael Dunn]

Thank you for every ones input

Yeah, I think I'm going to go ahead and try to purchase as an Investor

Since I'm wanting to Flip the house, I figured that a bit more patience on my end will be well worth it vs buying as an O.O. and only having to put 5% down for the 10% down, that is required if you purchase as an investor

Can someone please clarify how a Renovation loan via a HomePath property works..... Is it still 10% down or does it go up to 15% if you add on the Renovation part of the loan ?

Also, to purchase a HUD property as an investor , is it too, 10% down ?

Thank you everyone for the help

[Mark Ferguson]

VA and FHA are only owner occupied loans and you have to live in the house a year. Homepath is the only loan I know of that allows investors to put less than 20% down, unless you go hard money. If you do a homepath loan and sell it quickly (less than a year) the lender may get a little annoyed because those are meant to be long term loans and that is where they make there money. Nothing illegal or anything, but that lender may only do it once if you flip the house right away.