1st time home buyer

[Mike Lee]

Hi,

I have always thought that the ideal "first rehab" would be one that I live in. I heard from several people that banks will not allow you to buy their REOs if you are using an FHA loan...especially if the property requires repairs. I was wondering if I closed on the property (either under my name or an s-corp.) with hard money would I still be able to refinance with an FHA loan as a first time homebuyer (still get tax credit)? I have some cash (enough for 20% down), but would prefer to use OPM and hold on to the cash. Is this possible? Has anybody done this? I would like to get into my first home with as little out of pocket as possible.

Mike