Funding for “Investment Property” which will eventually be our retirement home? Any help?

Here’s the situation: My husband and I currently have a primary residence in North Dakota which we have a mortgage on (monthly payment is $ 823). We plan to retire in 15 years. For the past year we have been looking at property for sale with or without a residence on it to have set up as our primary residence in retirement. This last week we found it. Its perfect, everything we want for our family, upstate New York, 5 acres, stream, surrounded by apple & peach orchards, 1/4 from Lake Ontario, across the street from a state park, 15 minutes from Amish Country, huge barn, etc. Currently there are renters in the property and it is For Sale By Owner. The property is selling for $ 155k and the current owners bought it for $ 145k 3 years ago. We believe it is reasonably priced. Our credit score is between 760-770 and have a low debt ratio (no car payments, no credit debt, one small 3 year loan under 7k that we got for our parents to consolidate their loans and they pay on time.) I think we have formed a good repore with the sellers. This is their second home as well, they live out of state.

I have talked to a handful of banks and we are definitely preapproved. The down fall is that they are considering this an investment property because there are currently renters in the home whom we have agreed that they will stay for no longer than a year, then becoming our vacation home until we can retire there. Is there anyway around this “investment” classification that the lenders are calling it. For 14 out of the 15 years it will be a vacation home until we can make it our primary residence. With the lenders classification the lending falls under more strict rules. For example we will have to have 20% down, plus closing costs, totaling about 42k due at closing. That’s a lot of money! But we want to get in now because I know as we speak mortgage lending practices are tightening and new rules are being put into place. With this and inflation we want to get in now before it will cost us even more money. Our plan would be to have it paid off by the time we retire.

Please anyone with any ideas/advice would be helpful. We are open to non-traditional ideas like “assuming a loan” or the like.

Here is what we have been given by the banks thus far:
30 year fixed
pay 2 points
6.625 interest rate
20 % down
Payment around $ 1070 a month

Thanks in advance.
I would like to add a few more details and thank you to all who have helped in answering my question thus far.

The current owners own the house in full, so there is no mortgage. Also, I know they want to sell this house so they can use the money from equity for their new house. We haven’t put in an offer yet but they have already told us they are firm on the price, 155k and that they have already reduced it by 15k. I do believe it is a great deal at 155k.

Hope these minor details help. Keep coming with the good advice.

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