I am attempting to purchase a Triplex with an FHA mortgage. I intend to live in one unit and rent out the other two. I qualify for the mortage but there is one problem. All three of the units are currently rented so I cannot move in. Therefore the FHA owner occupant mortgage does not work (right now). My question is, with an FHA mortgage, would I be able to make the seller an offer with a delayed move in date? This would allow time for a unit to become vacant, so I could move in after closing (on the delayed date). Thanks in advance for your responses!
FHA loans require occupancy within 60 days....How long till a unit becomes available?
Maybe a 203K FHA renovation loan? I know with a rehab loan that occupancy can be delayed for up to 6 months, but I don't know how that would work with a tenant involved.....or how about a cash "Buyout" as an incentive to leave early.
Thanks for the reply. Unit will not be available until Spring. Any other way you think I can structure the deal?
Sometimes you can structure it so that one of the tenants leaves early. This can usually be accomplished by the owner offering an incentive to the tenant for early termination of the lease. You can't offer the incentive. Only the owner can do so.
Generally speaking, the owner will want you to have your loan commitment prior to have the tenant vacate. Make it a condition (on your side) that the tenant actually vacate prior to closing (a few days before is fine). Don't close with the unit you plan to occupy still having the tenant inside - that is a can of worms you don't want to explore.