I'm new to real estate and I want to find a multifamily house to finance with an FHA loan. To my understanding I have to live in the house to receive the loan, but I currently stay in a rental and in my lease it states I have to give 180 day notice for termination.
I'm not sure the best way to go about getting the loan and still having to live at my current residence until I end my lease. My thoughts were to find a multifamily house and have a partner finance the FHA loan and continue to pay rent for my current lease until the contract is over since the point of living in an multifamily house with an FHA loan is to essentially live "rent free".
Any other thoughts or suggestions on the best way to handle this situation?
How far into the lease are you? If its a whole year then I would wait a little bit until its close to the end. However, either way you know you can break your lease still, because most landlords just keep your security deposit when you do. What is a couple of hundred dollars compared to living rent free. Still read the full stipulations of what breaking the lease entails just so they don't screw you over more than expected.
If I was in your situation, I would first start doing my research on what I want, what neighborhood I want it in, figure out my finances and what I can afford. If everything looks good and I am approved by my mortgage company, I would then give in my 180 day notice (I think that is a ridiculously long time by the way) of termination. While its getting close to closing, I would be packing my things together to move out.
If the property is turn-key I would start advertising once I get the keys and move my stuff into the place.
Anyway, I could be wrong about all this but the main this is to see what are the repercussions of breaking the lease early. If its only not getting your security deposit refunded then its worth it to break the lease.
@Erin Heard , afaik, FHA Lenders won't let you close on the primary you'd be buying until you can promise that you'll be able to move in within 60 days after closing.
Good that you're thing ahead, but please keep that in mind. Welcome to BP. All the best...
I'm 6 months into my lease. And just to recap so I know what you're saying. Do my research, look for what I want, and then make sure I can get approved for the loan. Then after that give my notice and look for deals and set it up so that I'm ready to move when my lease ends or break it early based on repercussions, correct?
Thank you, I wasn't aware that they gave you time to move in.