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How to Buy a House to Live In and Move the Tenants Out

David Xie / Sep 23, 2022 / Expert Articles

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Hello everybody! Today we're going to talk about an awesome topic. This is a topic that comes to us almost every week. Hey, I'm trying to buy a house that we've got a tenant in. So we all know right now, one of the biggest issues that we are facing in the world is the lack of housing. And because there's a lack of housing and values are really high, a lot of these landlords are trying to take advantage of the housing market and maybe unload some of the properties that will help them build a different type of portfolio.

So in that situation we get a lot of calls saying, Hey, how do I buy this home that I want to live in, but there's a tenant in it? Well, I'm going to talk about all the different agencies and what their guidelines are.

Number one, we're just going to get this straight out of the way, okay. Conventional, VA, USDA, FHA is typically going to be 60 days. You've got to occupy the property within 60 days of the consummation of the loan, basically when the loan closes. However, there are some extenuating circumstances, and that's what we're going to talk about.

With all of the agencies, veterans have an advantage. So we just had Memorial day and thank you for your service if you served our wonderful country. Because without you guys, we would not have a safe home or a country to live in. So thank you for your service. Thank you. So as a veteran, because of that, you do get some special benefits. And the special benefits are if you have orders or you're over a hundred miles away from the property that you're purchasing, you could have your family occupy the property before your orders are up.

It could be temporary orders, it could be 12 month orders. So as long as your family is occupying the property, or you have a child, one of your dependents occupying the property, that's absolutely fine. And so we've seen adult children, maybe who occupy the property while the younger kids are finishing up school with mom and dad in their previous duty station.

However, as a veteran who wants to PCS and go to another area without having a house ready for you. Right. So that's totally cool, and thanks for your service once again. However, let's go back to the extenuating circumstance. The other extenuating circumstance, this is an underwriter discretion thing.

So if you're buying a house and you're not going to occupy it within 60 days, you've got to let your loan officer know. And if you're getting a conventional loan, as long as we have a really good letter of explanation as to why you're not going to be occupying the house within 60 days of the closing, then we can let that slide as well.

Now, other factors to consider are homeowner's insurance, right? What kind of homeowner's insurance do you need to get on a house that's vacant versus one that's occupied? Because as much as we love home inspectors, they're human. They can put all their detectors on things and check everything.

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However, I've even purchased a house in the past where the house wasn't occupied, it was a foreclosure and the utilities got turned on. And guess what? Well, my wife called me after a fishing trip and she said, honey, our house flooded that we want to buy. So that was a really, really bad situation.

So I never want to see you in that situation. So this is a very, very common question. And if you have any questions on this, I've got a full chart and guidelines that I've already printed out and typed out for you and we can go over it in great detail. Feel free to call me seven days a week. This is David Xie with the Xie Mortgage Team.

My phone number is (757) 478-8493. Please be sure to like this video, because Scott will put me on this channel a little more. Be sure to subscribe to our channel because we've always got amazing content with great people on this channel. And I look forward to talking to you in the future.

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David Xie

Hi, I'm a mortgage expert living in Virginia. I am also licensed to help with your home loan anywhere in the Country. Do you have mortgage questions? How can I help? View Profile

David Xie NMLS # 262139 Branch Manager 3302 Old Bridge Rd, Suite A Woodbridge, VA 22192 (757) 760-3488 david.xie@findmywayhome.com

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About David Xie

Hi, I'm a mortgage expert living in Virginia. I am also licensed to help with your home loan anywhere in the Country. Do you have mortgage questions? How can I help?