Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
lhenley

Identity of Interest

Recommended Posts

In another forum, someone posted that a mortgage broker he talked to mentioned that the FHA will no longer accept the 3 ½ percent down because it is a Tenant/Landlord relationship. He said that late last year, new laws went into affect that referred the Tenant/Landlord relationship as an “identity of interest”.

 

This person also stated that he had done some searching on the web, and that it looks like this doesn’t apply as long as the Tenants live in the home for at least 6 months.

 

Has anyone else heard of this?

 

Thanks,

 

Lynn (FL)

Share this post


Link to post
Share on other sites

Lynn, my understanding is that the FHA considers the landlord/tenant relationship an Identity of Interest if, as you said, the tenant has been leasing the property for six months or more. In which case they are requiring 15% down. Of course, I am no great legal mind so if someone can come along and kick my argument to the curb, bring it on. B)

Share this post


Link to post
Share on other sites
Lynn, my understanding is that the FHA considers the landlord/tenant relationship an Identity of Interest if, as you said, the tenant has been leasing the property for six months or more. In which case they are requiring 15% down. Of course, I am no great legal mind so if someone can come along and kick my argument to the curb, bring it on. B)

 

Lynn, Michael.

 

So where are we?

 

Can I assume 3.5 is good fha down if they live in property 6 months?

 

I personally dont like getting involved with them obtaining a mortgage, but do se the benefits of it.

 

 

Michael- Do you still just get a credit score and leave it at that as you mentioned previously?

 

i liked that idea but market changes and seller expectations have changed somewhat

 

Tom

Share this post


Link to post
Share on other sites
Can I assume 3.5 is good fha down if they live in property 6 months?

Tom, with the FHA don't assume anything. Ask specific questions and pin someone down, preferably in writing.

 

Michael- Do you still just get a credit score and leave it at that as you mentioned previously?

Each deal and owner are different. Whatever is required to keep the deal moving forward.

Share this post


Link to post
Share on other sites

FHA has for some time required the tenant to make 6 payments to the owner before they can finance.

Consider it "tenant seasoning"..HA!

FHA is currently 3.5% down

Share this post


Link to post
Share on other sites
FHA has for some time required the tenant to make 6 payments to the owner before they can finance.

Consider it "tenant seasoning"..HA!

FHA is currently 3.5% down

 

Whew,

 

Thanks all for your input, clears up a few things, glad fha still in ball game

Tom

Share this post


Link to post
Share on other sites

×
×
  • Create New...