Down payment requirement for fourplex FHA loans.

[Jorge Lugo]

Hello All,

I am hopeful for some feedback. I am a current real estate investor, I currently own a duplex and fourplex. I am looking to purchase another fourplex in about a year from now, this is a newly built beauty, and the seller will be asking for $600k. I would like to personally occupy one of the units, so I will be looking for a personal mortgage. However, so far throughout my search, lenders are asking for higher down payments for a Fourplex with an FHA loan.

I thought FHA loans were only 3.5% down, from 1-4 units? I am not sure why, but every lender I went to so far is asking for much higher down payments for FHA if it is a fourplex...

Can anyone confirm if it is possible to get a FHA with 3.5% down for a Fourplex? I live in NY and the property is located in NY.

In advance, I greatly appreciate any help and guidance. My concern is I do not want to go the conventional route or the 20% down route, as it would be a much higher down payment (over $100k!). I much rather use a FHA if I can get a 3.5% down.

Thank you,

Jorge