What happens if you buy Multifamily with FHA, but its fully occcupied?

[Faiz Kanash]

Just a quick general question.. If you purchase a multifamily property, lets say 4 units, and use FHA loan for the lower down payment benefit but the entire building is occupied, what would happen? I understand that FHA does require the borrower to live in one of the units for at least 1 year, but in the case that the entire building is occupied by tenants, whether on lease or month to month, what would happen? Would the lender not approve the loan for said property, would the lender require the borrower to evict one of the tenants, or is there something else that might happen?

Thank you!

[Russell Brazil]

Underwriter wont approve the loan til they have evidence one unit will be vacated for you to move into