Renting out a property with a conventional loan.

[Ryan Zimmerman]

I am looking at purchasing a property with a conventional loan. The property is currently being rented by a couple who’s lease doesn’t end until late 2024. 

Is it possible to purchase this home with a conventional loan and honor the current tenants lease with the possibility to renew their lease for another year?

I do not have enough capital for the investment loan down payment. 

Thank you!

[Perry Farella]

Ryan- Its true as above that if buying as a primary residence you are to occupy within 60 days. I imagine you want the lowest down payment ? But the property has a written lease to the tenants until end of 2024 ?  That means you cant buy it as a primary residence. An Underwriter will see on the appraisal that it is leased and want to see a lease copy. As stated by others you can buy as Investment house with a minimum 15% down payment and honor the lease until end of the year.

Or can you induce seller to help you do a  cash for keys plan and pay the tenants to leave now ? With a written agreement to leave the Underwriter will then allow you to buy as a primary residence with a low down payment. Do you have a buyer agent ?  Im always left wondering why agents dont offer guidance in complicated situations.