So if you're income is 50,000 and the 3 units rental income is 36000 annualized and your local AMI is 90,000 then you wont qualify because 80% of 90,000 is 72,000 and your combined rental and salary is 86,000 (example).This basically leaves you with the FHA owner occupied option to keep your min down payment low at 3.5% up to 4 units.The down side with FHA is the property (if 3-4 unit) will be subject to self sufficiency rules which states that 75% of the rents from all units at the property, even the owner occupied unit, must exceed the monthly mortgage payment or PITI (prin/int/taxes/ins).

It's a 4-7 day process to confirm the Tenant has sufficient funds. 

Quality is in the quantity.

I am wondering if that would be sufficient.

The 3-4 units will have to meet the self sufficiency test.Feel free to reach out if you have any questions. 

That all being said, as your loan officer mentioned anything about the FHA self sufficiency test for a 3-4 unit? 

IF that's true, then he poses very little threat to you and should be a good prospect.I am a little concerned because you mention he's been living with family, which indicates he is not self-sufficient and you may not be sharing the whole picture.

Without sufficient response, Josh will not see this as a desired item by the community, so please respond or vote and send your colleagues to this thread.Thank you.Will BarnardWill Barnard

If you gave him a blanket statement to install per local code and you didn't give him a specific quantity or location then the contractor is at fault. 

This should give the tenant sufficient time to consider the new lease terms or make other arrangements if they choose not to sign a new lease.2.