FHA Multifamily Owner Occupied Financing Options?

Question

I am looking to purchase my first property and am interested in an owner-occupied four suite apartment. I have been reaching out to some well-known companies (i.e., Quicken Loans, Navy Federal Credit Union, and USAA) and am getting conflicting information. None of these companies have an FHA product for multi-family homes, and the Conventional Mortgage products offered by one servicer can only be used for a duplex.

I would like to know if FHA first-time homebuyer loans can still be used for multi-family owner-occupied 4-unit properties? I'm being told that the laws have changed and I can't seem to find a specific direct answer online.

Thank you!

I would like to know if FHA first-time homebuyer loans can still be used for multi-family owner-occupied 4-unit properties? I'm being told that the laws have changed and I can't seem to find a specific direct answer online.

Thank you!

Wayne Brooks · Answer

Yes fha loans are for up to 4 units, owner occupied one unit. FYI, Quicken is the absolute worst loan company to get loan from and most agents won’t accept a preapproval from them.

Best best is a local lender. The big banks offer these but they often have extra overlays/requirements.

Harjeet Bhatti · Answer

@Andre Lamar You can use FHA and Home Possible loan for 2-4 units.  Both products are good for 1st time home buyer.

Josane Cumandala · Answer

The terms a bank will offer will vary on any loan product. I'm not an expert on FHA loans but I'm not aware of any laws related to that agency being changed. It may be that the FHA itself is revising its own policies which I'm pretty sure it can do without legislation from Congress so long as their policy doesn't conflict with some existing federal law. It may also be that local banks would rather not deal with the onerous regulations of an FHA loan and instead are steering you towards other products.

I'm following this thread because I'm curious about this topic as well and would love input from someone more knowledgable about FHA loans. Best of luck Andre!

Quiana Chandrasekar · Answer

@Harjeet Bhatti I am married and live with my husband. However, his name is on the deed - not mines. Would I be able to use an FHA loan as a first time home-buyer and live in the property for at least 12 months even though I'm married? Thanks so much!

FHA Multifamily Owner Occupied Financing Options?

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