All Forum Posts by: Pradeep Xavier thathew

A seller is interested to sell the property to me and willing to lease the same property for 3 years. The seller holds an FHA loan on the property at sub 4% interest and have 27 years left in the amortization. The seller is willing to sell the property at around 10% discount from the potential appraised value and in return asking me to lease the property to them for 20% discounted rent for 3 years.

The reason the seller is selling the property is because they are going through divorce but, the wife and 2 kids prefer to stay in the property longer. The property is in Columbus OH. I originally thought I can assume the FHA loan and let them lease the property for 3 years. But, looks like for FHA loan assumption, I need to make the property as my primary residence after the assumption. I can't do that.

What are my options here? Please advise.

Never a good idea to buy a house on terms and rent back to the seller.

Understood. Thanks! I can probably counter them to sell the property at 5% discount from the appraised value and they leave the property. In this scenario, is it possible to assume the FHA loan and lease to someone else or any other workaround that I retain the sub 4 interest rate creatively?

The problem you have is that they are divorcing. State laws will dictate their options and the judge can reverse anything you do. Is it a community property state, will child support be ordered, is the loan in both their names or just one, is the title in both of their names or just one, was the property bought before they were married or after and using who's money, have they filed? So many questions, so little time.

Yes, it probably can be done, but you'll need guidence to get through it. You can go to my website listed in my bio at

https://www.biggerpockets.com/users/mikeh695

The website is listed, go to Real Estate 101. That's what you need for this or someone else who understands Subject To, Banks and Legal. It's pretty specific and most people don't take the time to "cross learn" these things. I do.

No, Ohio is not a community property state. Instead, the division of property in a divorce under Ohio law is subject to a rule known as, “equitable distribution.”

They bought the house after getting married. They both are in the loan as well as on the title. They haven't filed for divorce yet. And I don't know whose money was used at purchase.

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Columbus, Ohio

Quote from @Account Closed:

Quote from @Pradeep Xavier thathew:

What are my options here? Please advise.

Never a good idea to buy a house on terms and rent back to the seller.

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Columbus, Ohio

What are my options here? Please advise.

2 Votes

Columbus, Ohio

@Daniel Rivera, are you still working with Venture Property Group? How is your experience now? I am in the market looking for property managers in Columbus OH.

1 Vote

All Forum Posts by: Pradeep Xavier thathew

Pradeep Xavier thathew has started 1 posts and replied 4 times.

Post: Assuming an FHA loan and leasing the property to the seller

Post: Assuming an FHA loan and leasing the property to the seller

Post: Assuming an FHA loan and leasing the property to the seller

Post: Property Management Columbus Ohio