FHA (2-4 unit) Question/Recommendation

[Trentan Moore]

Hi Guys,

My business partner and I are looking to take advantage of the low money down option of using an FHA loan to purchase a 2-4 unit property in the Pittsburg area. I would be the owner occupied resident that has to live there for 1 year. As we were going through the pre-approval process my lender informs me that FHA requirements are to put 25% down. This completely contradicted everything I have read/researched about FHA as a house hacking investment strategy.

I was wondering if anyone could clarify this and was also looking for a recommendation for an investor friendly lender in the Pittsburgh Area so we could get a second opinion.

Thanks

[Albert Bui]

Originally posted by @Trentan Moore:

Hi Guys,

My business partner and I are looking to take advantage of the low money down option of using an FHA loan to purchase a 2-4 unit property in the Pittsburg area. I would be the owner occupied resident that has to live there for 1 year. As we were going through the pre-approval process my lender informs me that FHA requirements are to put 25% down. This completely contradicted everything I have read/researched about FHA as a house hacking investment strategy.

I was wondering if anyone could clarify this and was also looking for a recommendation for an investor friendly lender in the Pittsburgh Area so we could get a second opinion.

Thanks

You may want to run through the other requirements when using FHA for this house hacking strategy as well:

- does the property meet self sufficiency rules of gross rents X 75% - PITIA => 0 ? (only applies on 3-4 units)

- do you have 3 months cash reserves after down payment and closing costs (unless if you're getting a huge lender credit to pay all your costs) - only applies on 3-4 unit properties

- health and safety issues on the property? (applies to all FHA Collateral)