Selling Guide Fannie Mae Single Family Part B, Origination Through Closing Subpart 3, Underwriting Borrowers Chapter 5, Credit Assessment, Traditional Credit History pages 463, 465-466 https://www.fanniemae.com/content/guide/sel011713.pdfThere are what they call "lender overlays" which banks and lenders will tighten up the Fannie/Freddie guidelines to improve their overall performance.

Direct, you are securing a loan from the USDA, guaranteed the loan is from a traditional lender, but backed or guaranteed by the USDA.

Since I'm focusing on investors I don't think the traditional methods of cold calling, calling expired listings and canvassing neighborhoods applies.

I went traditional financing withers properties that were light cosmetic rehabs.

I looked into doing an FHA into a 4plex here the problem is that everything is going for cash offers or traditional financing at the worst.

This sounds to me more like they ran into some costs that were unanticipated vs a traditional "rehab" so I don't see the turn around being a problem.

I'm getting quotes as high as $65 per board for hanging, taping, mudding, wrapped windows and orange peel finish.  

Let me explain what I mean...Traditional marketing like radio, tv, newspaper, direct mail, flyers and card decks are next to worthless and they cost too much money in most cases.  

I was only familiar with collateralized debt.So when I was lamenting the fact that I could not get money for more homes an entrepreneur friend said, “call the bank and get a signature loan”.Having never heard of this before, I called, and sure enough, IF you have good credit and income, a bank will give you $25-150K just for your signature…to go buy cars, pools and pay for stuff you don’t need.Or, you can use it to buydistressed real-estate.So, here’s where it could go bad.Don’t be stupid.Have your exit strategies.Then execute.My typical deals look like this:HUD/Homepath/VA forclosure wants $41K for a home with an ARV of $65-75K.Let’s assume it needs $10K.I start my bidding ridiculously low, so $24K, but eventually get it for $28.5K.I use “cash” and close fast and get it rehabbed in 2 months…could be faster, but that’s the average.Immediately after I close, I am looking for ways to collateralize the debt…ie REFI.Because right now, I own the home OUTRIGHT, w/ no liens.I do have this other debt not associated with the home and I want to pay it off ASAP before I have to make my first payment.I can 1) use a portfolio lender (typically 80% of receipts, then I retire the rest of the loan w/ my cash).2) Wait 6 months and use traditional financing where I have the possibility to getting all of my money out of the deal since they go off of appraisals, not receipts, typically 75% LTV.While I wait 6 months, my payments on $35K are around $500/mo.Home rents for $850, so I can do this and still pay the bills.3) flip the property to a new home owner and make 7-10K after expenses or 4) do nothing and pay the house off in 7 yrs w/ the 9% signature loan.I hear of people using hard money and the expenses associated, but for the smaller deals like these, IF you have good credit, they don’t make sense.Thoughts?

I'm finding that most agents have no idea how to help a family about to lose their house other than traditional sales.