FHA Financing for Multi Family

[Shirley Jean-Louis]

Hi everyone,

I am interested in getting a multi unit property as a first time home buyer. I was thinking of just going for it and getting a fourplex with an FHA loan but I am hearing from someone that I am speaking with at Quicken Loans that the max that I can buy with an FHA loan is a 2 unit property, is that correct? I was hoping to move to and buy something in the Huntsville, AL area

Thank you

[Melvin List]

@Shirley Jean-Louis yes you can finance a 4 unit FHA as long as the property passes the Self-Sufficiency Test.  The properties rental income minus a 25% vacancy factor must be higher than the mortgage payment.  If the property does not pass the Self-Sufficiency Test then you might want to look into Home Possible with 5% down.