I Have 30 Days After Closing To Occupy-says FHA
Buying Duplex on FHA, First Time Home Buyer. One side paying almost $100 more than mortgage. Doesnt want to move at end of her lease which is in July.
The other tenant pays less(a friend of the previous owner) and lease not up till September.
Obviously I want the more pleasant tenant that doesnt want to move and that pays over the mortgage to stay.
If I dont take occupancy, how will lender know I didnt take occupancy till Sept?
I understand the tax implications a little bit that it'll be considered invest property I I don't occupy.
Any advise please. Also are those online LLC creators valid? I want to close this under a LLC. Closing is in 60 days says my lender.
Thanks for your time.
I wouldn't sit up nights worrying about violating this FHA provision. As long as you have possession by the time anybody at FHA can get around to doing something I think you'll be ok.
However, given that the less desireable tenant is also a friend of the seller I would use this requirement to my advantage. Go to the seller, ask them to get their friend to move. Explain that this is an FHA requirement (and therefore you are not the bad guy) but you are afraid the closing may be delayed if you cannot get possession of the unit at closing. This gets rid of the problem tenant and makes it someone else's problem.
Thanks for the insight!!!