Avoid FHA financing restriction on intrafamily purchase

Becoming a renter helps your position

DEAR BENNY: I am currently trying to purchase a home from my daughter. The loan was approved, but the lender told me there is a law that if you purchase a home from a family member, they can finance only 85 percent of the sales price. Is this true? –Roger

DEAR ROGER: I was not aware of this so I contacted Craig Strent, from Apex Mortgage in the Washington, D.C., metropolitan area. He confirmed that FHA has such a guideline. The only exception is if you have been a tenant in the property and have been so for at least the previous six months.