Maximum number of units you can purchase with the FHA loan?

5 Replies

Hi everyone, I am looking to purchase a property in Raleigh, NC after graduation in May 2018. I would like to use the FHA loan, but I would also like to buy more than 4 units. What is the maximum number of units you can purchase using this type of loan? Thanks for the comments in advance!

FHA only allows 1-4 unit properties. 5+ units are no longer "residential" properties

Just a little background. As I understand it the FHA loan is government backed to get normal people into homes. These homes are part of a class of property called "residential" as mentioned by other before me. Residential is classified by 4 units or less. Once a property has 5 units it is commerical in most cases and you should operate under that assumption. Think of it this way: would the government, whose objective is trying to get normal americans into home, think that an aprtment complex is an acceptable home? No that's just silly!

@Brock Hoffman   At this point in your life you might want to consider using some more advanced and aggressive techniques.

If you have the finances to back it up, you should be able to get at least two FHA loans for a total of 8 units fairly quickly.

You would have to use the relocation or family size exception to the one loan at a time rule.

I am not an expert on this kind of financing.  You should look for someone who has closed these.

I think you could get at least 12 units in two or three years by buying a four unit moving 100 miles away and buying another one then moving back and buying a third.

I have to disagree. There is at least one FHA program for commercial 5+ apartments.

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