FHA Self Sufficiency Test

[Robert Andersen]

Hi, I'm doing research on buying my first 3/4 unit apartment building in Chicago with an FHA loan. I have some question and confusion about the self sufficiency test.

1) When adding the income for your total net rental income do you include the unit you're going to be living in?

2) Can you use a non-conforming or in-law (basement) apartment towards that income?

[Nick Riccio]

1) When adding the income for your total net rental income do you include the unit you're going to be living in? 

- Yes, total rent for the building, but a vacancy factor of 25% will be applied to the rents.

2) Can you use a non-conforming or in-law (basement) apartment towards that income? No - it needs to be a legal unit.