@Maria Apostolova-MihaylovaIs the credit score the only issue you are finding that is stopping tenants from being approved?

I'm also asking for contractor, CPA, insurance, and legal references from the property managers and will speak with / cross-reference them before going forward with one. 

Some quick heloc calculations I could be approved for maybe 150k. with 8.35% rate 20 year repayment = $1287 bill.

Financially, the numbers make sense, but I need to have a proper inspection since this is my first home (and I'm going unrepresented) and the house is built in 1915 with some renovations that were clearly done by the investor selling the property rather than a professional.Question: Although  previous owner has owned the property for 3 years and rented to tenants previously, should I be concerned that the legal zoning is only for SFH?

The question I have, is there a legal way to assume the mortgage since he has such a great rate?

There is a happy medium and I'd rather see a legal framework.

Most likely you will need to get everything approved by the HOA.

Just get a security deposit that you hold in escrow from the seller’s net proceeds (as high as you can negotiate or is legally allowable in your area, in my area the most you can do is 1 months rent) and have the sellers sign a lease/ post closing occupancy agreement like a normal tenant.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

And most will be able to pay the taxes when they come due, and put on a new roof, and put on a new coat of paint.As well as replace the carpets, cut the grass on a regular basis, replace the windows, reseal the chimneys when the liners crack, etc..It's unlikely that that these homes will fall into the slum category in 10 years or so, and make the asset underlying the loan virtually worthless.Or just vanish when the place starts to fall apart too much, due to no down-payment (no skin in the game 100% loans).Said the lawmakers who approved this.