question on the FHA loan

[Edgar Figueroa]

Hello biggerpocket community. my is Edgar and I have a question on the FHA Loan. you see I'm planning on buying my first 4plex using the FHA Loan in the city of Fresno, Ca. I'm currently living in San Mateo, Ca If I where to buy the 4plex, and only live in it on the weekends, but have it as my primary residence. would I face any Obstacles?

[Alexander Zurn]

@Edgar Figueroa simply put that would be borderline mortgage fraud. FHA requires you to be owner occupied. I don't know to what extent but my logic is to not even risk it. If the purpose if for work, maybe that is something that is available but if it is to deceive the FHA by using them to put 3.5% down and not actually live there, I don't recommend it.

Also - be aware that for 3-4 unit properties, FHA requires that the lesser of 75% current rents OR 75% fair market rents (determined by appraiser) must equal or exceed the PITI (mortgage payment). I had a loan go all the way to UW before I discovered that. Because the current rents had not been moved for over 8 years, they didn't come close and I therefore could not get the loan or property.

Good luck!