Getting a FHA loan on a triplex when all the units are filled

4 Replies

I found this 3 br. house with an attached apartment and another studio apartment in the back. I would like to move into the 3 br. house and rent out the other units. Unfortunately right now the only way I can afford it is with an FHA loan and my realtor is checking but last time someone made an offer on the place there was a tenant in the main house. In California it can sometimes be difficult to evict a tenant even when they have broken the lease. If I buy the house and I cant get the tenant to leave what kind of legal jeopardy am I in?

@Thomas Robb I don't remember the exact timeframe, but I recall is being around 60 days for you to move in after closing. If you are worried about getting a tenant to vacate, you could just ask the seller as a condition to close to have one tenant vacate. 

Ask for copies of the leases. You might get lucky and a lease could be coming up soon. With an FHA loan it might take you 60 days from contract to close, then if you have another 60 days to move in, that 4 months. You could have good odds of one of the three leases coming due in 4 months, then just not renew the lease.

Also, maybe you make an offer to all the tenants and see which one moves. You might end up in a smaller unit, but it could get you living there to satisfy the loan agreement, then you move into the bigger unit once that tenant moves out.

We would require proof that someone has been given notice to vacate.  

My realtor is still checking if it is empty. According to her the lease ended in December so it may be empty already. She has said that the seller has rejected every offer less than asking. It doesn't sound like the seller is very motivated to sell and I don't blame him. 

My realtor is still checking if it is empty. According to her the lease ended in December so it may be empty already. She has said that the seller has rejected every offer less than asking. It doesn't sound like the seller is very motivated to sell and I don't blame him. I am considering waiting until I have enough to get a conventional loan and just renting out all the units.

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