Actual FHA Loan Guidelines??

[Adam Detig]

Hey there BP, I have a question about the FHA loan guidelines. I have talked to two mortgage lenders in Lowell, Indiana (46356). One lender does the FHA loan but it can only be used on SFH and Duplexes, not Tri's or Quad's. The second lender does not do FHA loans but has their own version of it that finances up to 97% (.5% more than FHA) but again it cannot be used on tri/quadplexes. I have researched the web and I believe FHA loan IS usable on a tri/quadplex (please correct me if I'm wrong).

Is the first lender just wrong with his knowledge of not being able to use FHA loans on tris/quads, or is it just commonplace that lenders have their own rules that typically exclude tris/quads?

Also, if anyone can recommend a lender in NW Indiana that allows FHA loans on tris/quads, I would greatly appreciate it as I definitely want that option available for my first house hack.

Thanks BP.

[Michael Cohen]

FHA guidelines do allow for the purchase of 1-4 unit properties, provided at least one of the units is used as an owner-occupied primary residence.

The first lender has overlays, which is the lending institution adding additional requirements on top of guidelines. So while FHA allows for 3 and 4 units, that particular lender chooses not to.

PM me your contact info and I'll get you the names of some lenders out there.