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Primary Residence issue for FHA duplex with co-buyer
Jeffrey Rainwater, "jrainwater"
Real Estate Agent
Contributions: 120
Zillow All-Star
Since September 2009
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Is it true that for FHA loans, the buyer has to be a primary resident? If so, how should I approach this scenario....
Buyer (we'll call him John Doe) is buying a duplex. He will have family live in one side and lease the other side to the current tenant. He himself will not occupy either side. Offer was written as "John Doe and/or assigned" as the buyer. Here are the options I can think of....
1. I am wrong and he can get the FHA Loan without being the primary resident and/or its fine because his family members will be occupying one of the units.
2. We will have to scrape up the additional down payment money for the 10% rather than 3.5% which may mean asking for some closing costs from the seller and perhaps cutting some commissions if we are close enough to make it work.
3. We might be able to add one of the family members onto the purchase who will be living in the unit so that it would be considered a primary residence and qualify for FHA. Would it count if ONE of the buyers was a primary resident but the other one or two were not? Does it make a difference that they would only be occupying one of the two units?
4. If none of these options work, we would have to back out based on financing contingency.
Any other options I am missing? Any suggestions for this situation?
THANKS!
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