Using an FHA loan on a multi family unit?

[Angelo Revercomb]

Hey!

I wanted to reach out and see if anyone had any experience getting a multifamily unit using an FHA loan.

Specifically,

1) How does the process work?

2) Do you find a property and pitch the “idea” to a bank?

3) How does the bank consider the extra rental income from the other unit? Do you put that info together and show the bank?

4) What are your general experiences with this?

Thank you!

[Ryan Thomson]

@Angelo Revercomb This is a very straightforward process. 

The FHA multifamily loan is a loan you will easily be able to find. Most banks and lenders will do this.

1. Here is the order I would do that in:

   - Find a Realtor

    - Ask them for a lender recommendation

     - Get preapproved with a lender for a multifamily property. You will have to provide them with a bunch of financial information about your income and debts.

2. There is no pitching for something as straightforward as this. The government backs these loans and buys them up with Freddie and Fannie

3. You can often use 75% of the market long term rental income as qualifying income

4. Amazing and easy with the right team. 

Final Thoughts: I would use a conventional loan with 5% down now that those are available again for 5% down multifamily loans. Also ask about down payment assistance. If you make less than 150k you can get a 0% interest loan that will cover most of the down payment.