Owner Occupied 4-plex but Not Actually Living There

[Adam Rasmussen]

I am curious if anyone has any experience with this. I am very interested in looking at getting a duplex, triplex, or 4-plex but my situation wouldn't allow me to actually live in one of the units to get the more borrower friendly loan.

My question is, has anyone ever had someone partner with you on a deal like this just so the other person can live in the unit? They bring no money to the deal, no knowledge of how it really works but they are just there to get the cheaper loan. I have a handful of people who I know who would love some cheap housing so the right pitch could work but I wanted to see if the community had any experience or advice with this idea. 

[Andrew B.]

I believe I have heard this is possible Never had experience with it and some loans may not qualify, but generally speaking I believe you can have 1 partner living in the unit and 1 co-owner not living there.

That being said, I believe the law looks at intent as Clifford mentions above. If you give the bank any reason to doubt you, a quick google search of your name leads them to a public forum post where you ask people how to game the system. Not good. While it MAY work, and MAY not get caught, my personal preference would be to steer clear.