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TR U M P STR A TEGI ES FO R R E A L ESTA TE

order to qualify for owner-occupied financing, you have to honor
the lender’s occupancy requirement, which often means you must
intend to live in the mortgaged property for at least one year. With
that stipulation in mind, you can begin the wealth-building process
by selecting a high loan-to-value (LTV) loan program that’s most
appropriate for you.
Purchase a one- to four-family property, move into it for one
year, then rent it out and repeat the strategy again. Even after you
move out, the owner-occupied financing remains with the property.

Getting Started: High-Leverage Loan Programs for
Owner-Occupants

The following nine programs provide investors with all types of no
down payment or low down payment possibilities:

1. FHA 203(b). This is the most popular program available
through the Federal Housing Administration (FHA), a gov-
ernment agency that will insure real estate loans through con-
ventional lenders. Under this program, cash-short buyers can
finance one to four units with as little as 3 percent down.
Currently loan limits are $333,700 on single units, $427,150
on two-family units, $516,300 on three-family units, and
$641,650 on four-family units. Qualifying standards (income
required and credit) are more lenient than conventional loans
and those who show steady income and good-faith in paying
their bills usually qualify.
2. FHA/VA 203(v). This program is similar to the 203 (b) except
that it’s offered only to qualified veterans with less of a down
payment requirement.
3. FHA 203(k). This plan is ideal for homebuyers who want
to renovate, rehab, or add more value to a property. This

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