FHA Loan Limitations

[Patrick Davis]

I want to purchase a 10 unit apartment building using an FHA loan. My DTI ratio is above 57%, but the rent I receive on the property will easily cover my mortgage payment. Is there a debt product or workaround anyone can think of? Or should I just try and show the bank that the property will be able to pay for itself and my W2 income is irrelevant?

[Jason Wray]

You cannot use FHA for a 10 Unit "Commercial" building. FHA only allows you to go up to 4 units anythinng above 4 units is considered commercial. That would require a Commercial loan or DSCR which would require 20-30% down.

DSCR would be the better choice becuase it uses the "rents" to qualify and does not look at any personal income or liabilities.