Is it possible to buy a 5-plex with FHA loan if converting to 4?

[Nicolas Middleton]

So as I understand it, duplexes, triplexes, and 4-plexes all still can qualify for an FHA loan. I've seen several properties that are 5-plexes, such as this one:

http://www.trulia.com/property/3230409342-1533-Car...

So I'm wondering, if my plan was to purchase and convert the 5-plex to a 4-plex, would it then be possible to still qualify for an FHA loan?

Any input is appreciated, thanks!

[Omar Ruiz]

Your doing the same thing a lot of newbies do, and that is not consider things from the perspective of the lenders point of view. It's important to realize the fact that lenders are your biggest partner in the transaction with you. Lenders are not just going to throw money at you - at least not anymore. They are going to analyze the risks involved and only fund deals that have low risk and probability of defaulting. 

So consider the following:

Do you think a lender is going to give a newbie, funds that have high leverage to do construction and actually reduce the number income producing units and then attempt to change zoning, solely so that the borrower can get into the deal? Does that sound like high risk or low risk? 

If you look at things from the lenders point of view, you'll answer  a lot of these type of questions.