I am reading through the requirements of USDA Multi-Family loans (for larger non owner occupied multi-family properties), and they have certain income limitations for tenants, as they are intended for lower income housing.
Does anyone know what happens if someone were to buy an existing property (with existing tenants) with such a loan? Is it not possible if the existing tenants exceed the income limit (or they expect you to kick out these tenants?), or do they only require new tenants to meet the income limits? (Which for their "guaranteed loans" don't seem that low)
Perhaps @Brandon Turner has some input on this? (I learned about USDA loans in his book in the first place).
Just wanted to provide an update: I haven't found the information I was looking for, but found some other interesting information about USDA loans for multifamily properties: these loans are not intended for acquisition of a performing property. The loan requires that a minimum of $6500 of rehab be performed in each unit (this is the minimum, typically the USDA requires more). Also, while these loans can go to 90% LTV, they only go to 50% LTC.
So this is not what I was looking for at the moment.
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