lhenley 8 Report post Posted January 4, 2011 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
MichaelC 160 Report post Posted January 5, 2011 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. Share this post Link to post Share on other sites
EQUITY NOTES 0 Report post Posted January 5, 2011 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. 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
MichaelC 160 Report post Posted January 5, 2011 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
pilot76180 51 Report post Posted January 5, 2011 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
EQUITY NOTES 0 Report post Posted January 5, 2011 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 gameTom Share this post Link to post Share on other sites