Some crucial guidelines that sometimes go unnoticed ......... But will make or break your FHA deal with a 3-4 unit......
Reserve Requirements
3-4 Unit owner occupied properties must have 3 months PITI
Three (3)- and Four (4)-Unit Property
The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.
This market rent is determined by the appraiser. Basically this is stating that what the market rents are need to equal the mortgage payment or exceed. The FHA house needs to pay for itself as if the property was fully rented out, even though the buyer will be living in one of the units.
Please see my other post for more information on FHA financing.