1 Home, 3 Buyers, 5 Renters, 0 Credit — Help!

[Anonymous]

Oh, yeah, anyone, feel free to knock me upside the head if I need it...   I believe this situation constitutes less risk for my a/u because the home will actually generate money each month, quite possibly more money than the mortgage payments, through the renting out of rooms... Also, any renter would have to pay me first/last/deposit, so the mortgage payments wouldn't be jeopardized by late renter's payments.

In many states landlords have a very difficult time evicting tenants for non-payment of rent.  There often is a lengthy process that needs to be followed, which can end up with no payment of rent for months.  If the mortgage payments monthly are dependant upon renters payment of rent, be sure the amount of cushion available is as long as the eviction process.

[JuliaTN]

"I'm trying to understand who wouldn't want an FHA loan. "

More paperwork and red tape is the main reason.  I just submitted a bid on a house for a client and the seller's agent told me, "They are going to want at least $5,000 more because your client is going VA" (VA has similar restrictions).

[ShanetheMortgageMan]

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JuliaTN wrote:

"I'm trying to understand who wouldn't want an FHA loan. "

More paperwork and red tape is the main reason.  I just submitted a bid on a house for a client and the seller's agent told me, "They are going to want at least $5,000 more because your client is going VA" (VA has similar restrictions).

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True, there is a bit more legwork, paperwork, and some hoops to jump through... but FHA/VA have really relaxed their property requirements, so they are still pretty easy loans to get done.  JuliaTN, are you in an "in demand" market where sellers can be picky as to which buyers they want to accept offers from?

[pdxuser]

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WAFICOwatcher wrote:

In many states landlords have a very difficult time evicting tenants for non-payment of rent. There often is a lengthy process that needs to be followed, which can end up with no payment of rent for months. If the mortgage payments monthly are dependant upon renters payment of rent, be sure the amount of cushion available is as long as the eviction process.

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Oregon's eviction requirements are fairly light:

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Notice for Eviction A landlord can give a tenant a 30 days notice to vacate and not state a reason why. If a tenant is 5 days late in paying rent, the landlord is allowed to issue a 144-hour notice to pay or vacate. If a tenant is 7 days late in paying rent, the landlord is allowed to issue a 72-hour notice to pay or vacate. If the rent is paid within 72 hours, the tenant does not need to vacate. A landlord can give a tenant a 24-hour notice to vacate if the tenant has committed an "outrageous in the extreme" act. This may include threatening other tenants, intentionally damaging property or injuring someone. An act can be proven to be extremely outrageous even if it does not violate a criminal statute.

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