FHA owner occupied 4-plex. 10% vacancy rate or 25% vacancy rate?

Asked by Robert Myers, Tacoma, WA Mon Dec 15, 2008

A mortgage broker pre-qualified me FHA with a 10% vacancy rate for an owner occupied 4-plex. When I called him back he had left the firm. Now the only vacancy rate I am quoted is 25%. Why is this? Are there any mortgage brokers who use 10%? If so, how can I get in touch with one or who might one be?

Help the community by answering this question:

+ web reference
Web reference:


Lori Lewis, Mortgage Broker Or Lender, Bethlehem, PA
Tue Dec 16, 2008
Looks like Washington falls under the 25% rule.

Rent received from the additional units in a multiple—unit property in which the applicant resides in one of the units may be used for qualifying purposes. The rent, after subtraction of the local FHA estimate for vacancies and maintenance (25% if no local estimate) may be added to the applicant’s gross income in calculating the qualifying ratios.

Vacancy Factors Developed by HOC Jurisdiction

• Santa Anna HOC – 10% Vacancy Rate

• Philadelphia HOC – 15% Vacancy Rate

• Atlanta HOC – 15% Vacancy Rate

• Denver HOC

o 10% Vacancy Rate for: Colorado, Iowa, Minnesota, Montana, and Wisconsin

o 15% Vacancy Rate for: Kansas, Louisiana, Missouri, Nebraska, New Mexico, North Dakota, South Dakota, Texas, and Wyoming

o 20% Vacancy Rate for: Arkansas, Oklahoma, and Utah
1 vote
H Singh, Other Pro, Houston, TX
Tue Jul 22, 2014
Does anyone have any updated information? Does the Vacancy Factor still vary by state for the Denver HOC?

I'm looking to purchase my first owner-occupied quadplex using FHA.
0 votes
Scott Schulz, Agent, Tacoma, WA
Tue Dec 16, 2008

Getting back to you. It is correct that FHA is 10% and Conventional is 25%. Whoever quoted you, gave incorrect information to your specific question. I have a 25 year mortgage person for you to call. Kathy Roark (Windermere Mortgage) 253-761-8646. Her office is located locally in my office at... 4701 So. 19th Tacoma, Wa. If you need any further information, please do not hesitate to call me at 253-318-2171. These are no brainers and easy to facilitate.

Best regards,

Scott Schulz
Windermere Professional Partners
Associate Broker/ Real Estate Consultant
0 votes
Julie O'Brien, Agent, Tacoma, WA
Tue Dec 16, 2008

Below is the response from my mortgage lender that I use often. Give him a call and see what he can do for you.

I'm happy to help with anything else you may need.


Julie O'Brien



FHA is 10% and conventional is 25%. I would love to talk with them. Let me know. Thanks..

John E. Hunter

Lic # 510-LO-35590

Cedar River Mortgage, LLC

23220 Maple Valley Hwy SE #12

Maple Valley, WA 98038

(425) 413-4400

(877) 272-7415 Toll Free
0 votes
Scott Schulz, Agent, Tacoma, WA
Mon Dec 15, 2008

FHA has changed some guidelines on their loans recently. I will check out some of the details on this for you. I have an in house loan officer and will confer with her tomorrow. The property does have to be owner occupied for sure. I will be in touch, If you have any further questions feel free to call or email me at 253-318-2171 or scottschulz@windermere.com
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more