Can an Investor Obtain a FHA Loan?

Today an investor called and asked me if he would be eligible for a FHA loan. My first thought was No, as I have never originated a FHA loan for a non-occupant borrower; my rates sheets over the years have never allowed me to price out a rate for an investment FHA loan. And I suppose some companies do not allow such a thing regardless. However, the 4155, that golden light that guides us to FHA guidelines, does have specific stipulations for investment properties. Let me quote directly from the light: "With permission from the appropriate Home Ownership Center (HOC), private investors, including non-profit organizations ... may obtain FHA-insured mortgages for the following reasons:

Purchasing HUD Real Estate Owned (REO) properties. Owner occupancy is not required when the jurisdictional HOC sells the property and permits the purchaser to obtain FHA-insured financing on the investment property."

There's always more to the story and heaven knows there are plenty of HUD REOs right now on the market. If you are an investor interested in purchasing a HUD property, ask your Loan Consultant to check their program guidelines before answering "No" to this question too quickly.