I have lenders that can do this loan.For this refinance transaction, the borrower(s) must meet Fannie Mae’s borrower eligibility requirements as described in B2-2-01, General Borrower Eligibility Requirements.

For said same $385,000 I invested in  over 12 one bedroom supportive housing units in a retirement community I co-own, I pay no tax, and a matter of fact, I get numerous tax deductions for helping my government with a national crisis.  

  $1,000 deductible, $1M liability. 

:D Regards,Jorge I haven't seen that before, you deducted your assignment fee to determent your MAO?

If no luck after a while), which my first few years of the mortgage payments will be pending on it and hopping not to dip into to my reserved money.Yes, I’ve to live in the house for any of the 2 continuous years out of a 5 years period in order to qualify Home Owner Occupancy term, so when I sell the house later, I can deduct 250K (or 500K, if married filing jointly) from the sale price of the property, and pay capital gains tax on the difference.

To participate in HAFA, homeowners must still meet HAMP’s eligibility criteria (principal residence, first-lien mortgage, serious delinquency, unpaid balance under $729,750, and a mortgage payment over 31 percent of gross income).

If the gross rent, less the 50% expenses, less your debt service = cash flow, then you may (or may not) have a good deal. if it does not, then you likely do not have a good deal (of course there are other factors to consider such as potential future appreciation, tax deductions, principle pay-down, etc)If you have a seller who owes only $5k less than the actual value of the home, then you have no deal unless the lender is willing to short pay the loan for significantly less than what is owed which is unlikely unless owner is way behind on payments.

Does it state that I am able to claim the difference between how much I am currently charging my tenant and how much the fair market value after I deduct a 4% discount from it?

So $500k of property would give you a tax deduction of about $20k per year (an approximation considering that some of the price will be for personal property and depreciate on a 5/7/15 year timeline, rather than 27.5 years).

In a few more months I'll hit the 2 year mark and be eligible for conventional funding on investments again.