Posted on: 21st Oct, 2009 09:43 am
i am in the process of purchasing a triplex which has rent control. the previous owner failed to complete the rehab work in the now two vacant units which are not in liveable conditions. the 3rd unit is currently being rented far below fair market value.
if i were to take out an FHA loan which would require me to live in the property, under these circumstances would i be able to evict the 3rd unit renter based on the FHA loan requirement that i live in the property and because the two other units have not been fully rehabbed and are not in liveable conditions?
please advise me. thank you...
if i were to take out an FHA loan which would require me to live in the property, under these circumstances would i be able to evict the 3rd unit renter based on the FHA loan requirement that i live in the property and because the two other units have not been fully rehabbed and are not in liveable conditions?
please advise me. thank you...
Hi James,
You are right that FHA requires a borrower to occupy the property as his/her principal residence. But that does not give you the legal authority to evict the current renter from the property. Much would depend on the terms of the rent agreement. If the agreement gives the renter the right to stay in the property for a certain period of time, until he violates the terms of the agreement, he can occupy the property. However, being the legal owner of the property, you do have certain rights to the property. I think it is better to get the rent agreement reviewed by a lawyer and explore the possibilities of an eviction. You can also talk with the renter and see if he is ready to vacate the property within a certain period of time.
You are right that FHA requires a borrower to occupy the property as his/her principal residence. But that does not give you the legal authority to evict the current renter from the property. Much would depend on the terms of the rent agreement. If the agreement gives the renter the right to stay in the property for a certain period of time, until he violates the terms of the agreement, he can occupy the property. However, being the legal owner of the property, you do have certain rights to the property. I think it is better to get the rent agreement reviewed by a lawyer and explore the possibilities of an eviction. You can also talk with the renter and see if he is ready to vacate the property within a certain period of time.
You do have to purchase the property as an owner occupied property to get the FHA mortgage.
You do not have to occupy the unit that has a renter. You can occupy and must occupy one of the units when repairs are completed, it could be one of the two units that are being rehabbed.
If a property is not liveable and needs repairs, you are probably doing and FHA 203k buy it and fix it mortgage?
Those mortgages only require that you occupy the property when the repairs are complete.
You do not have to occupy the unit that has a renter. You can occupy and must occupy one of the units when repairs are completed, it could be one of the two units that are being rehabbed.
If a property is not liveable and needs repairs, you are probably doing and FHA 203k buy it and fix it mortgage?
Those mortgages only require that you occupy the property when the repairs are complete.
