FHA Loans Re: Multifamily Home

[Steven G.]

Hi All,

I am new to real estate investing and I'm having trouble finding some information about FHA loans, so maybe someone here with some experience can help?

I am looking to purchase a building with 4 units and occupy one of the units myself. I saw that FHA loans can enable the buyer to obtain a mortgage with a smaller down payment(3.5%). This intrigued me because it will give me some flexibility if I choose to make another deal, basically I don't want to tie up a lot of money if I don't have to. Is this a good reason to pursue an FHA loan?

When applying for an FHA loan certain requirements must be met in order to obtain the loan. The requirement in question is: Mortgage Payment Expense to Effective Income

the max ratio is 31%

Can one include rental income from the other units in the building in their "effective income"?