Tenant wants to pay late rent with FHA home loan??

[Daniel Hanson]

My property manager informed me that a tenant with late rent wants to catch up on rent with proceeds from an approved FHA home loan. My immediate reaction was "B***S***, that's not possible". So I had the property manager tell the tenant they have 1 week to get that in writing from the bank before we start proceedings.

But I thought, just possibly someone on BP knows more about this. My assumption is that an FHA home loan only goes toward the purchase of a new home during a purchase closing- I don't believe it is an actual check that a homebuyer can carry around and spend on whatever they like. Am I wrong?

[Jeff Brower]

Your initial reactions are correct. I wouldn't give them a week for anything and proceed with pay or quit as soon as able as normal.