Assuming an FHA loan and leasing the property to the seller

[Pradeep Xavier thathew]

A seller is interested to sell the property to me and willing to lease the same property for 3 years. The seller holds an FHA loan on the property at sub 4% interest and have 27 years left in the amortization. The seller is willing to sell the property at around 10% discount from the potential appraised value and in return asking me to lease the property to them for 20% discounted rent for 3 years.

The reason the seller is selling the property is because they are going through divorce but, the wife and 2 kids prefer to stay in the property longer. The property is in Columbus OH. I originally thought I can assume the FHA loan and let them lease the property for 3 years. But, looks like for FHA loan assumption, I need to make the property as my primary residence after the assumption. I can't do that.

What are my options here? Please advise.

[Eliott Elias]

Take over the property subject to. Never assume a loan as an investment property. In this scenario, you will be deeding the property in your name, and keeping the loan in the sellers name.