Buying owner occupied 4-plex with FHA or VA loan

[Lyuba Barrington]

Hello everyone!

I think I've read everything (on BP forums) regarding 4-plex bought by owner-occupant.

Question: Does anyone have recent experience with VA or FHA loan on a property like that?

My buyer is concerned about his cash to closing requirements, which are hitting close to 10% on 280K loan.

Apparently - regular SFH 6% seller assistance allowance for FHA loans is not applicable in 4-plex situation - hence full closing costs to pay. There is also 3 month PITI reserve requirement. Can anyone comment on that please?

Also - how would FHA compare to VA zero % loan - in regards cash to closing calculation (for another potential buyer). I assume there are all kind of restriction on closing costs as well.

Thanks in advance!