You need to seek other financing options. Maybe you can get a seller financed property that can compete with todays rates and downpayments that you would otherwise be faced with.

Most likely, you're not going to be able to close with a FHA loan on an investment property. Stated another way, you need to seek other financing.

Hi Ashley,

You do have to occupy the property to participate in the FHA program. As for the tax credit, not only do you have to occupy the property, but you must also do so for a minimum of 3 years otherwise you have to repay that money. If you are unable to put the amount down needed for a conventional/investor loan, the only way around it would be to purchase the property now--live in it for at least 3 years, then rent it out later. This will take a bit more time, but now is such an amazing time to be a first time buyer, so you would be making a long term investment which will show a return in a few years.

I have experience with Ellicott City and other areas in Howard county, and I specialize in assisting first time buyers. If I can be of assistance, please give me a shout!

Lisa Devnew
LDevnew@cbmove.com

If you are trying to purchase a home in order to receive the federal tax credit, then you must owner occupy the property. This credit is not for investment properties. Same goes with and FHA loan. That program is for people that are buying a home that they will be living in. The rates are lower for owner occupant loans than for investor loans because the owner will be living in and taking care of the property. The banks feel that when you are not living in a property, their is more risk. Therefore, the interest rates on investment property loans are higher and so are the down payment requirements.

Please feel free to give me a call to discuss your options. I would be more than happy to assist you. My office is located in Baltimore County. I am very familiar with the 21043 zip code area as well as my home county of Harford. Looking forward in helping you with your questions.

Sincerely,
Tina Beasley
Associate Broker
Real Estate Professionals, Inc.
443-243-1832 Cell
410-234-2244 Office