FHA OO mortgage - appraisal timing
Hi all, I am working to purchase a property and found that an OO FHA mortgage best suits my needs.
I have an accepted offer on a multi but have run into a snag … one of the tenants is delayed in moving out of the unit I’ll occupy. They’re very cooperative and working to secure a new place, but it could be another month.
In the meantime, everyone is getting restless as we’ve delayed the financing until a unit is vacant. It is a real pain (plus rates have shot up … oh well, my bad luck).
Anyway, my question is this: will OO financing be approved even if the units are occupied at the time of appraisal?
My lender suggested I simply have the tenants sign a letter stating they’re moving out by a particular date; others warned me that a fully occupied property will be rejected by the appraiser.
It would be so much easier if we could just move forward with financing in the meantime – appreciate any thoughts or feedback from firsthand experience.
PS – property is in Connecticut.