Qualifying for FHA for MultiFamily unit

[Jalpan Jangiani]

Hello Fellow House Hackers,

This is a follow up post to my previous one. I got a really good response from all of you, which motivated me to proceed to the next step.

So I reached out to my lender regarding my interest for Primary Residence Multi Family Property (preferably 3-4 units) with 5% down. She told me that the rents of all units have to be pretty high to qualify for 3-4 units with 5% down. They only consider 70% of the rental income towards the mortgage payment. 

1) Have any of you had troubles qualifying with this strict requirements? (My location is Alameda, CA)

2) Do you advice me to go with FHA or find some jumbo option?

3) Any of you familiar with DSCR type loan? She says we still require 20-25% down for this as well.