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.
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!
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.
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!
I'm pretty sure you have to occupy if it's FHA. Ask your broker for details before you get yourself in trouble.
Lender · San Francisco · Member since 2019 · 113 posts · 49 votes
4y
@Derrick Van Dyke you must use as Owner Occupied for at least 12 months and you must move in within 60 days of signing the Note. If the tenants are on M2M and current, that is positive. Are they willing to move out or will that be a problem? I'm also curious why you're choosing FHA route on this as well if it's a townhome/1 unit. Feel free to reach out if you have any financing questions or need a 2nd opinion on anything!
As you're under contract already, time is of the essence!