Short answer
Yes. Fannie Mae allows sales between people who already know each other, such as a landlord and tenant, for existing homes. FHA allows it too, but HUD limits the loan amount when a tenant-landlord relationship exists at the time of the contract, unless the landlord is a family member and you've rented there for at least six months. Tell your loan officer about the relationship at the start, and keep records of the rent you've paid.
Is buying from my landlord allowed?
A sale between a landlord and tenant is what lenders call a non-arm's length transaction, meaning the buyer and seller have an existing relationship. Fannie Mae's Selling Guide allows these for the purchase of existing homes. It's not a red flag on its own. Lenders just look a little closer at the price and terms, so the appraisal, title search and paperwork all still happen as in any other purchase.
How does FHA treat a tenant buying from a landlord?
HUD's Handbook 4000.1 caps the loan-to-value ratio at 85 percent when a tenant-landlord relationship exists at the time the sales contract is signed. That means you'd need more of your own money, or a gift, than on a typical FHA purchase.
The cap can be exceeded if the landlord is a family member and you've rented the home for at least six months right before the contract, with a lease or other written proof that you've lived there. See buying a home from a family member.
What if my landlord offers a credit or below-market rent?
For FHA, HUD treats some seller help as an inducement to purchase, which is subtracted from the price before the loan amount is figured. HUD's list includes an excess rent credit, repair allowances and moving costs. HUD also lists below-market rent, except for buyers who meet the family member exception. Ordinary help with closing costs is handled separately, within HUD's limits on seller contributions.
If you have a written rent-to-own or lease-purchase agreement, the rules for counting rent toward the purchase are different. See rent-to-own and rent credits.
How do I prove my rent history?
A strong rent history can help, and HUD now lets lenders use it for some first-time buyers. To verify it, HUD accepts your lease plus one of: written verification from a landlord with no family or business tie to you, 12 months of canceled rent checks, 12 months of bank or payment app statements, or a reference from a property management company. If you rent from a family member, HUD requires the lease and 12 months of canceled checks or bank statements.
Paying rent by check or bank transfer, not cash, makes this much easier. See does rent history help you get a mortgage.
What steps should I take?
- Get pre-approved before you agree on a price, so you know the loan options and how much cash you'll need.
- Put the deal in a written purchase and sale agreement. You can still hire your own real estate agent or attorney even though there's no listing.
- Order a home inspection. You know the home, but an inspector may find what daily life doesn't show.
- Expect an appraisal. The loan is based on the lower of the price or the appraised value.
More in the first-time buyer guide and how to get pre-approved.
Sources
- Fannie Mae Selling Guide, B2-1.3-01, Purchase Transactions (Non-Arm's Length Transactions)
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), LTV Limitations Based on Identities of Interest
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Inducements to Purchase
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Positive Rental Payment History
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.