Can you buy a quadplex with a FHA?

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Jorge Quintero
Houston, TX · Member since 2017 · 37 posts · 16 votes
8y
Johnny Soriano like was said, you can finance a multifamily property of up to 4 units with an FHA loan. Anything greater than 4 units is considered commercial and is a whole different ballgame, you wouldn’t be able to use the FHA for commercial properties. Hope that answers your question!
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  • Johnny Soriano
    OP
    Marietta, GA · Member since 2017 · 17 posts · 2 votes
    8y
    Or triplex?
    0Reply
  • Tim Burdette
    Investor · Lexington, KY · Member since 2016 · 29 posts · 4 votes
    8y
    Yes but you have to live in it
    0Reply
  • Jorge Quintero
    Houston, TX · Member since 2017 · 37 posts · 16 votes
    8y
    Johnny Soriano like was said, you can finance a multifamily property of up to 4 units with an FHA loan. Anything greater than 4 units is considered commercial and is a whole different ballgame, you wouldn’t be able to use the FHA for commercial properties. Hope that answers your question!
    1Reply
  • Mike McKeown
    Lender · Voorhees, NJ · Member since 2017 · 33 posts · 13 votes
    8y

    You can, but it must meet FHA's self-sufficiency test. This is required for all 3 and 4 unit properties.

    1Reply
  • Johnny Soriano
    OP
    Marietta, GA · Member since 2017 · 17 posts · 2 votes
    8y
    Mike McKeown what is a self sufficiency test?
    0Reply
  • Mike McKeown
    Lender · Voorhees, NJ · Member since 2017 · 33 posts · 13 votes
    8y

    FHA takes the rent for ALL units - even the unit you will not live in. Times that by .75 and that number is the maximum amount your mortgage payment, including taxes and insurance and MIP can be.

    1Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Johnny Soriano It will also have to pass an FHA appraisal - not just for the amount of the loan, but also for safety.

    That means no peeling paint, loose hand rails, broken windows, crumbling cement steps, etc.

    Those require a construction loan (FHA 203K) or Fannie Mae Homestyle.

    1Reply
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