You can get a normal owner occupied home loan to do this. 

If it is with HUD, did they foreclose or is HUD servicing the loan? 

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards.

You can buy a rental house, put $60,000 down and you will have to get a non-recourse loan for the rest of the mortgage.

I they accepted an offer of $118K from my brother but since he couldn't get the loan, we're starting over.

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

Are LPs entitled to see foreclosure, bank loan related docs?

Don’t forget to include the cost of the loan servicer. 

@Bryan HarveyJust realize they provide high returns but it’s my understanding your investment is an unsecured loan.

Since they keep the loans in-house instead of selling them on the secondary market, they can tailor loan terms to meet your unique circumstances as an overseas borrower.If you have strong assets or savings, consider looking into asset-based loans or no-doc loans.