Something just doesn’t feel right, need advice.

[Anjelica Allen]

Greetings everyone,

So I'm one week to closing on my first home. I'm purchasing a Duplex with a 203k FHA rehab loan (Property 275k).

1. The first unit needs repairs, nothing major (Estimate 27k). Second unit is occupied with tenants that are refusing to pay market value, they are paying 950, when the average rent is 1200+. I don’t like the idea of market value terms as rent prices and incomes haven’t matched in years. Seller claims they will give notice to vacate upon closing, which begs to questions does this fall on me now?

2. Another issue I'm having is that my lender requested me to pay the full year of home insurance before closing, even tho payments after closing will continue to go to escrow from mortgage payments for the year I just paid for. Lender stated that everything about my property is expensive, and 203k FHA loan doesn't allow/ or have grants available. Why not? Why do I have to pay this now, instead of paying it during closing with loan?

3. Lastly the biggest issue of it all is that the Loan Estimate had me closing at -8k, which was great, because I could keep my reserves to apply to the principle and or unexpected costs. But I received my Closing Disclosure document to sign and now its saying 18k to close, which wouldn’t leave me with a lot of cushion afterwards. 

With all the documents to sign, legalize language, and seller pressuring to close. Something just doesn’t sit right with me and I don’t know if it’s something I’m missing or I’m about to take on a problem. I’ve saved for so long to get to this point, that I’m worried after all this, I may have to walk away.