FHA for Multi Family

[Juan Contreras]

Hi everyone,

So I'm considering purchasing a 2-family property which has an empty basement in the NYC area with FHA 3.5% loan. Both apartments are fully occupied and I was going to take the basement so I can keep the rental income. However I've been told that because it's only a 2 family, one of those apartments has to be delivered vacant prior to closing since the basement is not considered an apartment? I thought that since there is a basement with bedrooms it can be considered owner occupied. I'm not familiar with this so can someone provide any information and assistance, it would be greatly appreciated, Thank you!