What is the process if you're looking to buy your first multi unit rental property using the FHA loan but there are existing tenants on a lease? I know with the FHA I would need to live at the property for a year but what if the tenant has a long-term agreement? Thanks!
Investor · Indianapolis, IN · Member since 2020 · 234 posts · 194 votes
6y
I had a deal kind of like that and they wanted to get full info on the tenant and asked if I could get them to sign a new, "stronger" agreement and after the background check it went on fine. I would look at their job history, income, credit, reason for renting, etc. This added a month to close just fyi so if you have a buyer or investor you may want to brace them for that lol. Hope that helps.
Rental Property Investor · Boston, MA · Member since 2019 · 19 posts · 20 votes
6y
I am about to close on a house in Cranston RI next week. it is a 3 family and my lender mentioned to me that if it were fully occupied and I couldnt move in within 30 of the closing date (or something similar to that) than I wouldn't qualify for the loan. luckily one of the units was vacant. I would check with a lender to make sure, could be my lender that required that.