Down Payment on a House Hack Using FHA Loan

10 Replies

I am currently looking at a Fourplex to house hack, I am planning to live in one unit and rent the others. Therefore, I plan on using an owner-occupied FHA Loan. However, I was speaking to some lenders and they are saying that I could only put 3.5% down on a Single Family or Duplex. That if the property is 3 or 4 units I need to put 25% down. Can anybody please verify this information?

I currently live in Albuquerque NM, and does anybody know a good lender?

@Carlos Licon I am a local realtor in the Albuquerque area and I work with clients to help them buy small multi family. I have a lender that I work with and as long as it's 4 or less units and it's owner occupied you can use a FHA loan at 3.5% down.

@Carlos Licon

You ran into a lender with an "overlay". It's additional underwriting protection created by the lender that's over and above what's required by Fannie Mae/Freddie Mac.

Shop around and you'll get some better answers.

Stephanie

@Carlos Licon great way to get started in the multifamily investing business. Just be careful about the area that you invest in. As you probably know, there are some challenging parts of the city with a lot of smaller multifamily. 
I own 75 units in Abq so let me know if you want to learn more?

Jens

@Jens Nielsen Yes sir I am aware of some of the bad areas. I am staying away from most parts of SW, SE (Expect Nob Hill & University Area), and Central. I am mostly looking in the NE, north of LLomas Blvd. And yeah ofcourse, I am always interested in learning from individuals like yourself!

@Carlos Licon make some phone calls take notes and build rappor I not sure about your city but it work for me. Letting them know I want to have my ducks in a row and ask away?

Originally posted by @Carlos Licon :

I am currently looking at a Fourplex to house hack, I am planning to live in one unit and rent the others. Therefore, I plan on using an owner-occupied FHA Loan. However, I was speaking to some lenders and they are saying that I could only put 3.5% down on a Single Family or Duplex. That if the property is 3 or 4 units I need to put 25% down. Can anybody please verify this information?

I currently live in Albuquerque NM, and does anybody know a good lender?

Hello 

I ran into this Particular situation when I had already put in an offer for a triplex and the lender that I was working with said they did not do triplexes anymore.

Thank goodness for bigger pockets because I was able to get a referral to another lender and they’ve been really helpful.

So basically it’s all depends on the lender,

Look up  Elise Marquette  here on BiggerPockets she  really been amazing.

She listens to your goals and give you so much resources to help you.

Good luck!