Getting an FHA Loan for a Multifamily Property

[Cade Ruthardt]

Hey BP! My name is Cade Ruthardt and I'm fairly new to the community, so far I love it! I had a few questions about qualifying for an FHA loan. My plan is to do a little house hacking and get an FHA loan for a duplex, triplex, or fourplex, and rent out the unoccupied unit to cover expenses. My question is would I qualify, or how do I find out if I qualify for an FHA loan?

I currently have less than 30k income, and little cash assets. I'm just curious on the basic qualifications and steps to applying for an FHA loan.

P.S. This is going to be my first housing purchase, so I have no experience and would love all the advice I could get. 

Thanks!

[Ray Ebert]

If you can find a property with tenants the bank will count 75% of the income from the units except the one you will occupy towards you qualifying for the loan. Its an awesome way to leverage your buying power. FHA loans with PMI will always have the fee for the life of the loan, you will need to refinance to get rid or it. A conventional loan with less than 20% down will also require mortgage insurance but that will drop off upon reaching 20% equity without a refi. FHA will do 1-4 units with as little as 3.5% down, typically a conventional will only do up to a duplex, however there is a program by fanie mae called home possible for first time buyers that will do up to a 4 unit on a conventional loan with 10% down and requires a pretty good fico score. This is the program that I just used to buy a 4 unit.