I want to purchase a 2 family home in Western New York, using this low interest loan.I would occupy 1 unit as my main residence, and would rent out the other side.A few questions for people who have dealt with this program..Do they allow half of the multi family home to be rented out, or are they focused on only owners living in the home?

Based on the quick glance of your link I could not find anything that referred to deficiency judgments or properties other than primary residences, can you point to where that is mentioned?

It does not survive the sale.Anyone residing in the property is the responsibility of the new owner.

Unless you can get in a residence and slowly rehab it--sell it in two years and make a tax free gain I'm not convinced this plan is doable.

I've seen some that looked OK, but OK isn't where I want to be in my residence, flips or rentals.

There are also resident agent fees, etc.

For non-residents, lenders usually would only go up to 65% (ie 35% downpayment), but sometimes they do make exceptions if the client's profile and the property are great (i've seen them giving 80% to non-residents).I'm not sure about the tax.

To answer you Jon,This is my first project, so YES I am learning as I go.No this is not my primary resident, and I got into this for a flip.

At the peak of the bubble, these townhomes were going for maybe $220k, so it's already come down $30-40k.With that in mind, I was thinking of selling our place and maybe renting for a little while and ride out further downward price movement, and eventually find a single family home at a great price for our primary residence, which is what we've been wanting to do for a while (maybe an REO or pre-foreclosure).I was thinking that since I have a ton of equity in my place, I can be pretty flexible.

It does not work for most of the investors I deal with, but if the property is being bought as a residence, its not a big deal.