Does anyone know if it is possible to purchase a 4-plex using USDA residential lending? I am getting mixed answers from the two lenders in my area that do USDA. I know FHA will do it, but I'm trying to purchase with no money down. Does anyone have any experience in actually succeeding in acquiring a loan, or being the lender to this type of loan?
My wife and I qualify for the USDA income requirements, our area qualifies for territory requirements, and we do not own a home. We are currently renting, but would love a primary residence that also makes money. Also, does USDA allow you to count 70% of the rental income to help qualify, like FHA?
One other caveat: these are townhome style condos, and are legally described as "building and unit" not "lot and block". I know FHA will not lend on building/unit described properties, but does that matter in the event of buying all 4 connected units? Thanks for any assistance.
USDA guaranteed and direct loan programs are for single family properties only (including houses, approved condos, new mobile homes, townhouses). If you have specific questions, I would contact your state USDA field office. Contacts can be found here: