Updated over 3 years ago on . Most recent reply
FHA Loan on Tenant Occupied Property
Hello, I am a 26 year old working professional in the Bay Area, California. I am looking to become a first time home owner and am currently in contract for a townhouse. I am making the purchase via an FHA loan. The townhouse currently has tenants living in it on a month to month lease. I have a copy of the their lease, and a screenshot of indicating that they have been making their payments on time.
I have been given the following documentation:
- Tenant Estoppel Certificate
- Tenant Occupied Property Addendum
What are the difficulties that I am going to encounter from this situation? It is my understanding that on FHA, the owner of the house has to occupy the property for at least 12 months before they rent it out entirely.
My escrow money is due in 2 days, so I'm looking to determine what I should look out for. Thanks!