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FHA Loans for 2-4 Unit Properties

Finance a Duplex, Triplex, or Fourplex with an FHA Loan
Low Down Payment - Low Interest Rates - Simple Processing.

FHA Loans for Multi-Family Properties – Duplex, Triplex, or Fourplex

Do you need a FHA for a loan for 2-4 unit property, such as a duplex, triplex, or fourplex? We offer competitive FHA home loans for multi-unit homes. FHA loans are strictly for 1 unit, 2 unit, 3 unit, and 4 unit properties. They standard FHA loan is not eligible for any property with 5 or more units.

There are unique FHA loan limits which are set at the county level. If you would like to view the loan limits for your county, you may find your state’s FHA loan limits here. Then, scroll down until you locate your county and you can view the exact FHA loan limits for single family residences, duplexes, triplexes, and fourplexes.

FHA Loan Requirements for Multi-Family Properties:

  • Owner Occupied – You must occupy at least one of the units in the duplex, triplex, or fourplex. You can rent out the other units, but you must live in one of the units on the property.
  • Credit Score – Our minimum credit score requirement on FHA loans for multifamily properties is a 620 middle score (fair credit or higher). You may use a cosigner in some cases. We encourage you to apply and see what you are eligible for.
  • Debt-to-Income – The maximum debt-to-income ratios are 29/43. The first ratio of 29 is your front ratio and is calculated based on the exact percentage your total mortgage payment is compared to your bring home income. The backend ratio is comprised of your mortgage payment and any other debts you may have. If your DTI ratios are higher, you may have qualifying  “compensating factors”.  This could include higher than average credit scores, savings, long job history, or other aspects of your “borrower profile” that help your case to be approved.
  • No Foreclosures or Bankruptcies – It is a requirement to have not had a recent bankruptcy or foreclosure in the last 3 years.  There are some exceptions to this rule, however.  For instance, if you foreclosed due to an “extenuating circumstance” that might was outside of your control such as medical emergencies or a job loss, you may still be eligible.
  • Mortgage Insurance – All FHA loans require two types of mortgage insurance premiums (MIP).  This includes an Upfront MIP fee and monthly MIP.  You can use our FHA mortgage insurance calculator to see how much it costs.  These fees do not have to be paid out of pocket.  They can be tied into the loan amount and mortgage payment.

Would you like to apply and see what you qualify for?
Click Here to Get Pre-Approved for a FHA Loan

2020 FHA Loan Limits for 2-4 Unit Multifamily Homes.

Some areas, which are known as “high cost areas” have significantly higher FHA loan limits.   There are high cost areas in most states, with many counties in some states, such as California, Hawaii, and Washington State.

The standard FHA loan limits are shown below.

  • 1 unit  $331,760
  • 2 unit  $424,800
  • 3 unit  $513,450
  • 4 unit  $638,100

The high cost area FHA loan limits are shown below.

  • 1 unit  $765,600
  • 2 unit  $980,325
  • 3 unit  $1,184,925
  • 4 unit  $1,472,550

If you would like to see the FHA loan limits in your county, please visit this page, click on your state, and then scroll down to see your county and match it to the number of units you wish to purchase using a FHA loan.

Would you like to apply and see what you qualify for?
Click Here to Get Pre-Approved for a FHA Loan

FAQ About Buying a 2-4 Unit Property with a FHA Loan

Can I buy an investment property with a FHA loan?
You may not purchase an actual investment property with an FHA loan.  However, you can collect rental income on any other units in the multifamily home.  You can not rent out all of the units though.  You must use one as your primary residence.

Can I use down payment assistance on a 2-4 unit property?
The majority of (if not all) down payment assistance programs will not be available for a multifamily home.  They are generally used for single family residences.  They are also only available to lower and middle income households.

Do FHA loans allow you to cosign with a non-spouse, such as a friend or business partner?
Yes, you can cosign with anyone you want with FHA-insured loans. They are not limited to married couples or significant others. Many who purchase a home with a FHA loan are friends, associates, or relatives.

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Fill out the form below to receive more information or call 1-800-731-3560

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Home Loan Programs Available In:

Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Georgia, Kansas, Louisiana, Iowa, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.