FHA Loan For Multifamily Properties?

Question

Hello Everyone,

Been away from BiggerPockets awhile. I live in Las Vegas and am looking at getting a home next year, sooner the better, to finally have my first rental. I'd like to get a multifamily and use an FHA (probably down payment assistance depending on what 3.5% or so equals). I know I have to "live" in the home for a certain amount of time. Multis in the midwest seem incredibly affordable and a popular choice, but for career, education, and other reasons I'm not ready to move to Kansas next year. But, knowing the Vegas market, I don't see many privately owned multi family buildings for sale, unless you could purchase an entire condo building. Hoping to get some guidance on what to do here. Thanks!

Dave Toelkes · Answer

@Jason Eyerly

FHA loans are for owner occupied properties only.  FHA loans have only a 3.5% downpayment requirement (no downpayment assistance from FHA but family members can gift you downpayment funds).  The interest rate will depend upon your FICO score.  Lower FICO score = higher interest rate.  FICO scores below 580 require a 10% downpayment.  Mortgage insurance is required with an FHA loan.  You can use an FHA loan to purchase a four-unit property as long as you owner occupy one of the units at least one year.

You have to be more specific about the guidance you are looking for.  If you want to use an FHA loan program to purchase a multi-family property in Kansas, then you will have to wait until you move there and can occupy one of the units