FHA on triplex requiring 75% of gross rents above PITI?

[Devin Chong]

I am looking at a triplex in Seattle WA that I had planned to buy as an owner occupant. It is currently listed for $820k, and gross monthly rents are roughly $4300/mo (way under market value). FHA with 3.5% down, PITI would be $4477/mo, however FHA requires that 75% of gross rents be above the monthly PITI. The monthly rent income would be determined by an appraiser, but would need to be roughly $6000 in gross rents to qualify. This criteria is in place to help ensure I do not default on my loan.

I have heard this is not the case for duplexes only triplex and above. If I go the conventional loan route, I will have need 15% minimum down payment. Does anyone have any alternative solutions or loop hole to having 75% of gross rents be above PITI?

Thanks in advance! 

[John Warren]

@Devin Chong this is where having the right loan officer makes all the difference. You are correct that the self sufficiency rule is so important when buying a 3 unit. I run into this all the time here in Chicago as our prices have risen a lot and many land lords have low/lagging rents. The appraiser uses either the in place rents or the market rents, whichever is lower.... There is a way to get this done, but you need the right lender who knows how to work this issue.