FHA explicitly says in their guidelines that FHA is not to be used to You can do up to 10 units using conventional financing and if your wife qualifies on her own, she can do 10 as well. 

Its also possible there may be an explicit variance for the property. 

the existing loan is an ARM, Adjustable Rate Mortgage.

Sometimes lenders consider the armed services similarly to a college grad entering the workplace, since you are committed to a field for XX amount of years, so they may count the income without the aging on it.Your $1,200 coupled with the income from the property (other tenants) who are already in place, will count toward qualifying income, so for a $60K purchase, you should be okay unless you have alot of debt that offsets the income (that shows up on your credit report). 

Guys, I have a 30 year - 3.75% fixed rate loan on 550k property that I am thinking of refinancing it into a 10 year ARM.

Hello,I am closing in on an SFR in summers and want to check if anyone is offering 2.8 Interest Rate on a 10/1 ARM loan in Georgia State.Purchase Price: 315K - Brand New PropertyDown: 20%Loan Amount: 248KFICO: 800+Debt to Income Ratio: close to the max limitOne on-going loan - rental income reported on Tax ReturnsAre there any penalties if this residence is sold before 10 years?

The best I've found in MA so far requires 25% minimum recourse and 35% down for non-recourse.  10 year (5 fixed,5 ARM),25 yr amor. and some early payoff penalties. 

@Stephen Spradley, a grand or two, more like an arm or two ;)This article may not be the exact same scenario as yours, but it still has a lot of really good info on the subject.

I however would go over there as a neighbor, but explicitly tell her you have an interest in purchasing the property.

I care because the lease explicitly forbid it.