DFW Dallas FHA Lending - True or False?

[Ben Volkman]

Dallas/DFW - I was speaking with my broker and she only had 1 lender who would do an FHA on a triplex (trying to do owner - occupied house hack). The lender said that in order to qualify for FHA the 2 non-owner occupied units need to cover the full mortgage payment in order to be approved for FHA 3.5% down program-- True or False?

I've never heard this in 3 years of podcasting and reading forums so it was a surprise to me.  If anyone knows, its the BP community!  

[Tyler Hodgson]

@Ben Volkman you can use income from all 3 units for the self-sufficiency test. Clear as day in the Handbook 4000.1



"Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s
estimate of fair market rent from all units, including the unit the Borrower
chooses for occupancy, and subtracting the greater of the Appraiser’s estimate
for vacancies and maintenance, or 25 percent of the fair market rent."



(a) Definition
Net Self-Sufficiency Rental Income refers to the Rental Income produced by
the subject Property over and above the Principal, Interest, Taxes, and
Insurance (PITI).
(b) Standard
The PITI divided by the monthly Net Self-Sufficiency Rental Income may not
exceed 100 percent for three- to four-unit Properties.
(c) Calculation
Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s
estimate of fair market rent from all units, including the unit the Borrower
chooses for occupancy, and subtracting the greater of the Appraiser’s estimate
for vacancies and maintenance, or 25 percent of the fair market rent.