4 plex lending standards
I recently talked to a mortgage broker, I’m selling my single family house and looking to buy a 4 plex.
I was kind of surprised to find out that fha or va Loans won’t even lend to you if 3 out of the 4 units don’t cash flow or equal to the mortgage amount.
I’ll be living in one unit. So I’m confused on why they will led me money on a single family home with a $1900 mortgage where I have no one but myself paying the mortgage.
Example-
650,000 4 plex
Unit 1-$1000
Unit 2-$1000
Unit 3-$1000
Unit-4 id live in
Mortgage is $3400 a month.
My income will way more then cover the difference from the loss of rent vs the mortgage.
They will not let me give me a loan on this property because the 3 units don’t cash flow or equal the mortgage.
So I’m curious if I need to speak with another lender or is this the basic rule that I completely missed?? I’ve just never heard of this standard.