FHA loan occupancy requirements during COVID and economic crisis

[Ryan McLean]

Hello,

I am in kind of weird situation and would like some advice. We just closed on a 4-plex a couple of weeks ago, we purchased using an FHA loan with 3.5% down. The property was and still is fully occupied with tenants who are on month-to-month leases. All the tenants have been renters for several years and are paying on time. At the time of purchase, we fully intended to remove one of the tenants and to move into the property as per FHA requirements. We were then going to Airbnb our current single family house. However, due to covid-19 and the potential economic crises we are heading into, we have already decided not to do Airbnb and are considering our options for moving or not moving into the 4-plex. We have considered just staying put in our current house in which we have a tenant that lives with us and basically cuts our mortgage payment in half with their rent payment. We would then just keep the four tenants in our 4-plex. Our mortgage clearly states that we must occupy within 60 days for one year unless the lender decides that undue hardship or extenuating circumstances beyond the borrower's control exist. We are also concerned about finding long term tenants for the single-family house. Furthermore, my partner is a paramedic and is likely to be part of managing the looming nightmare our EMS and hospitals are preparing for. Also, I may be laid off from my day job. We are attempting to do the right thing for our tenants, our lender, and ourselves. How do we stay out of hot water with the lender while remaining in our single-family house?