FHA Loan on MFH with Current Tenants
Hi All,
I'm using a FHA Loan to buy my first home, which is a duplex. I'm from Chicagoland area, and I'm running into a lot of duplexs that have confirmed tenants. I am planning to make a bid on a home today with this current situation, but I'm not necessarily certain of the details or how that works if the property is fully occupied. Any advice or insight would be greatly appreciated!
Thanks,
William
Most Popular Reply
@William Rushton echoing what most here have said.
For any primary residence loan (Conventional, FHA, or VA), you need to have the ability to occupy 1 of the units within 60 days of closing. Period.
However, here is what can be different from lender to lender...
For example, we will allow a signed letter from one of the existing tenants, stating that they are terminating the lease early and vacating. Many lenders do not allow that.
So ultimately, it is up to your specific lender on what they will (or will not) allow, and if they are truly helping you to find a solution. As @John Warren nailed it above, 99% of lenders/LO's truly aren't the right partner when it comes to real estate investing. Working with that 1% sometimes can make or break your success.
Best of luck!