Yes, you can buy from a Single Family residence all the way up to a 4plex with an FHA loan. As long as the property is owner occuped. Meaning the borrower of the loan has be living at the property as their Primary Residence. It can be done. I bought a 4plex in the past with an FHA loan and I lived in one of the units.
You will still have to qualify with your income and credit, and a portion of the rental income could possibly be used to offset the payment. As long as there are tenants already in place with long term lease agreements. You will have to put down 3.5% down payment and there will be another 3% to 4% in closing costs.
Get in contact with a good Mortgage officer like Darren with First Cal down below and they will be able to explain in detail their financing guidelines for FHA loans.
It's a competitive market right now. But, it is possible to get one. You will have to be committed and sieze the opportunty. Couple tips...Make sure you purchase a Home Warranty for the property. Hire a Property Management Co. to handle the rentals.
Barrett & Co., Inc.
Residential | Commercial | Property Mgmt.
You can qualify for a FHA loan to buy a duplex, triplex or 4plex as long as you live in one of the units as your primary residence. Downpayment is only 3.5% down.
FHA lending limits: http://fhamortgageinfo.com/
By default, it would seem that the straight forward answer is 'yes' - you can use FHA backed loans to acquire the above properties, providing that you're occupying one of the units as your primary residence.
What we found to be harder, is finding a mortgage lender who will provide the FHA loan for triplexes and quads. Quicken Loans - the largest FHA lender in their words - only does single family and duplexes according to our specialist. We'd love to find someone in New England that does it.
1) For FHA, owner occupied is owner occupied
2) The income used to be weighted a lot more in the past than now...we think, maybe, depending on who one talks to
3) Confusing? That seems to be the idea.
Bottom line, the guidelines appear to be, you have to have enough income to handle the mortgage, then the underwriters throw in the rental income to make your loan a stronger package to enable you to get the loan.
The FHA Program does indeed allow for inclusion of market rentals for the subject property in the qualification of Income. That having been said, many Lenders today are restricting the use of rental income to qualify.
Your best course of action is to meet face to face with a Local Mortgage Banker to get thoroughly prequalified based on that Lender's guidelines.
The agents below have given you very sound advice. You are absolutely able to go FHA with a multiplex which is 4 units or below. As for other particulars, we would need to ask you a couple more questions about your current status. Meanwhile, here are a few financing facts that might help you in your quest for success:
Also, if you would like to perform a direct search for multi-family properties, you may do so directly through our "MLS Integrated" website at:
Additionaly, there are a few we have purchased recently, so NOW is a great time to do so. We recommend the following (don't worry, they are already graded for you...ie. cap rates, ROI, desirability, etc):
If you have any further questions or concerns regarding this purchase, we specialize in the multi-family area...you are welcome to contact us directly.
Limestone Investments, LLC.
LV Property Search
We go down to a 620 FICO score on all our FHA products. Normally credit history in the perfect world we like to see 2x24 or 3x12 months on the tradelines on traditional credit. However, there is some flexibility under this with the automated decisioning. Soure of income, must reflect on your tax returns or we can't use it.
I would recommend that you talk to FHA mortgage Broker, I suggest that you contact
Barbara Estes @ WJ Bradley Phone (702) 281-0122 Email:firstname.lastname@example.org
If I can be of further assistance and answer
Any of your other questions please contact me
Realty One Group
I KNOW LAS VEGAS AND HAVE FOR 40 YEARS
John A. Brassner, MBA, REALTORÂ®
Residential â–ª Commercial â–ª Business Sales
Prudential Americana Group, REALTORSÂ®
10777 W. Twain Ave #333
Las Vegas, NV 89135
One Source Realty and Management
Cell - 702.501.0973
Website - http://matthewsellslasvegas.las.mlxchange.com