Government Loans for Investment Property

It is possible to obtain government loans for investment property. Each program has different requirements, so you may have to research a little before you find a good fit for your situation. There are many ways to finance an investment property. Obtaining government loans for investment property is but one of the ways to meet your goal.

Investing in Rental Property.

This government program allows you to buy one or several homes in a housing condominium development. The catch is that one of the condominiums must be your place of residence. To qualify for this benefit program, you must be a current or prospective homeowner.

This benefit program makes it possible to buy a home that needs repairs or modernization without getting multiple loans to cover the process. It is intended primarily for people who plan to make the property their home, although you may sell the home later. Typically, when someone wants to buy a home that needs repairs, they will have to have one loan to buy the property, a construction loan for the repairs and then a permanent mortgage.

The short term loans usually have higher interest rates and higher payments. This benefit program addresses this situation by offering one mortgage loan, at a long-term fixed or adjustable rate. It will finance both the acquisition and the rehabilitation phases. The mortgage amount will be based on the projected value of the finished property, rather than on the current value.

Eligibility requirements include that it must be a one- to four-family dwelling. It must have been completed for at least one year prior to purchase. The number of units must be in compliance with zoning laws in effect. Cooperative units are not eligible under this program.

The Farm Labor Housing Loan and Grant program offers capital financing for the development of domestic farm labor housing. These loans and grants are intended to buy, build, improve or repair housing for farm laborers. The laborers might be engaged in on-farm processing or even in aquaculture. Funds may be used for land acquisition, or to buy a leasehold interest in a site. Funds may be used to develop day care facilities and community rooms. Funds may even be used to purchase household furnishings or to pay construction loan interest.

These loans may be made to farmers, family farm corporations, farmer associations, Indian tribes, public agencies, nonprofit organizations and others. Grants are usually made to farmworker associations, nonprofits, Indian tribes and public agencies. Funds may also be used in urban areas for nearby farm laborers.

Loan terms are for 33 years at one percent interest. Grants may cover up to 90 percent of development costs. The balance (of 10 percent) may be a Farm Labor Housing Program loan. To learn more about all available government loan programs for residential housing, visit the Government Loans website.

Investors, individuals and anyone else may buy homes that have been foreclosed on by various government agencies, such as FHA, HUD (USDA and Rural Development) and VA. The HomeSales.gov website provides current information about single family homes for sale by the U.S. Federal Government. These homes are for sale by public auction or other method depending on the property. You must work with a real estate broker, real estate agent, or servicing representative to submit your offer or bid. Some properties will qualify for 100% owner occupant financing or 95% investor financing through Vendee Financing. Call 800-816-4346 to speak with a VA Vendee representative.

The government also has a wide variety of commercial properties for sale which you might buy as an investment. Additionally, you may find farms and ranches for sale which the government has acquired. These properties may represent a bargain if you have the highest bid, although they are generally listed at or near the market price.

To view the homes for sale and learn more about this program, see Homes Sales.Gov.

Most housing programs available from the U.S. Government were designed for the typical homeowner or owner / occupant. However, there are opportunities for investors and others if you follow the requirements.

• Rent to Own By Owner
• List of Popular Mortgage Companies
• FHA Loan Guidelines

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