Posted by John on September 17, 2005 at 17:40:21:
I am not a lawyer just an investor that came upon one of these not long ago. The seller had an agreement with the subsidising authority that they could not sell with in ten years. They had agreed as a condition of the loan that if they sold or moved or did not want the property that it would revert back to the government agency. I just thought i would pass this on. Good luck
Restrictions in a Subsidized Low-Income Mortgage - Posted by Anna
Posted by Anna on September 16, 2005 at 23:26:10:
A seller has a subsidized mortgage - based on his low-income. He wants to move away quickly.
A buyer wants to buy quickly. Can the buyer move in and rent the house before her own mortgage is approved?
The seller can not legally rent to anyone for profit, because the mortgage is purely to help a low-income person buy a house.
But, can the seller rent to a definite buyer, as a convenience to both of them?
If he can, I assume the rent amount would be the low subsidized amount that he currently pays. Anything higher would be a profit, which I feel sure is illegal.
Could the buyer’s rent payments be designated as part of her down payment? Would that help make this legal?
Or, do you think that early possession/occupancy by the buyer would be illegal, anyway you try it?