Can you get an FHA loan on a commercial property?

[Franklin Marte]

Can you get an FHA loan if you plan on buying an apartment building if you also plan on living there? it has 6+ units I've seen a couple different ones that I was interested in 9+ units etc.

[Matt Borgeson]

Hey Franklin,

Under the HUD/FHA lending umbrella, there are a few different loan programs that are geared towards multifamily investing. Based upon the limited information you've provided, and making no major assumptions (e.g., extensive renovation/rehabilitation activities), the FHA 223(f) loan program is probably a good starting point. For your benefit, the unit count floor under this program is five units, so the six-unit property you referenced would work (i.e., would meet the unit minimum constraint). As an additional upside, multifamily HUD/FHA loans provide extremely lender-friendly and advantageous terms. While there are very appealing aspects to HUD's loan programs, there are disadvantages too. The major negatives corresponding to the FHA 223(f) program are, the exceptionally long processing and closing time frame (i.e., generally 6-12 months), the increased up-front fees, the required initial and ongoing Mortgage Insurance Premium payments, and the increased lender involvement when compared to a bank loan and/or agency debt. There a good deal more information about the nuances of the program, so I have provided two links below that you can review to see if the loan program makes sense for you.

1. CREFCOA - HUD 223(f) Apartment Loan Overview: CREFCOA - Section 223(f) Loan Program URL
   
2. HUD.GOV - Purchase Or Refinancing Of Existing Multifamily Rental Housing: Sections 207/223(F): HUD.GOV - Section 223(f) Loan Program URL

Hope this helps! 

Regards,