For me, it was easy.

You are dealing with a real estate transaction and there is a lot of liability and exposure, especially for the inexperienced.

Assuming these are for short-term loans, such as for flips, @Keith Groshans, you could do what we do and let the borrower keep the money and pay everything when they sell the property.

Maybe another one is tenants may tend to stay longer as long as they are eligible for the program.Not 100% sure, but I don't think they always pay that FMR number. 

This is the explanation I was looking for.

I would never do it for any “buyer” putting down less than 25%.

There are really great REI opportunities in different markets - markets in the Midwest and Southeast of the country are particularly lucrative - where not only are the purchase prices reasonable for most RE investors, but the homes are turnkey (new builds or completely rehabbed homes, tenant ready, systems 10 years of life remaining on them, property management teams in place) with appreciating home value AND appreciating rent.

Housing is cheap for a reason. 

Please join us for our second AUGUSTA BIGGER POCKETS MEET-UP.

I have a heloc on my personal home for 200,000 but ive only used 16,000 of it.