Is it possible to get an FHA loan on a duplex, triplex, or fourplex?
Answer:
I was recently discussing that topic with my favorite lender, Robert Geiler of Rancho Financial. Here are the relevant bullet points of our conversation:
– All FHA loans are for owner-occupants
– The typical FHA loan is 3.5% down
– You can get an FHA loan on a duplex
It’s almost impossible to get a 3.5% down FHA loan on 3-4 units. This is due to very strict FHA rules on expenses and qualifying. This applies regardless of your income.
You can get an FHA loan on 3-4 units if you put well over 3.5% down, but this defeats the purpose because the main benefit of an FHA loan is that it allows a low down payment.
