Quote:
Originally Posted by Gustoo
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Home loans are now being used more like business loans, so they favor giving new home loans to people that already own homes, as collateral. These homes are then used for commercial purposes (rental, air B and B) and therefore should be part of a business loan process rather than a home loan process.
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This is not true for the most part. Some people do game the FHA loan program, but most people who buy residences to rent do put substantially more down than the type of people who would need programs to buy a home.
I never ended up pulling the trigger, but I was able to find a loan for a second home (that I could have rented out part time) with 15% down. Typically that's more like 20%-25%. Still, me putting down $120K on an $800K in a resort area is not the reason people can't afford homes.