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Can a buyer qualify for FHA on multi residential?

Profile picture for akoi
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If a Buyer plans to live in a duplex and rent out the other, can he/she qualify for FHA
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June 07 - San Francisco
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Hi Phyllis ~

Yes, FHA will finance up to a 4 unit property as long as one of the units will be owner occupied.  You can find the maximum FHA loan amount for your state/county here.
https://entp.hud.gov/idapp/html/hicostlook.cfm

Does your buyer own a home now?  If so and it is a SFR it will look suspicious if they are buying a duplex to live in. Just a heads up.  If I can be of more help please feel free to contact me via my profile page.
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June 07
Profile picture for jaysondhi
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This is true.  You should also keep in mind that if you look at 3-4 unit properties, the market rents must debt-service (support) the entire mortgage payment.  This makes it extremely difficult if not impossible to purchase with a low downpayment in the San Francisco Bay Area. 

Two unit properties work much better in our area with FHA.
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October 01
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The qualifications for FHA financing on a duplex is different that the qualifications for FHA financing on a 3 unit or a 4 unit property. You'll need to bear this in mind should your buyers switch gears and start looking at 3 or 4 unit properties.

Whichever the number of units (up to 4); it (at least one of the units) must be owner occupied.
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June 07
Profile picture for danielle_lazier
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Yes, I believe so. There are loan limits for single unit and multi-unit purchases. It will vary by county. I believe a home buyer can purchase a duplex with a FHA loan as long as they owner-occupy their unit.

Cheers,
Danielle
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June 07
 

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