FHA LOAN FOR A OWNER ACCOMPANIED QUADPLEX HOME

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FHA LOAN FOR A OWNER ACCOMPANIED QUADPLEX HOME

Erik E.
Rental Property Investor · Orlando FL /Cleveland OH/Detroit MI · Member since 2019 · 52 posts · 32 votes

OK! So I got approved for my 1st loan this week & was highly excited! The interest rate was fantastic & it was a FHA

loan. Long story short I'm only looking to purchase a quad-plex home

owner occupied. Apparently the quicken loans lender didn't tell me they

don't provide FHA loans for quad-plex buyers. Really thought this was a

easy/simple process being that I see so many homeowners accomplishing

this. I'm in the ORLANDO FL. area any lenders whom can direct me?!

Thanks!

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Latasha Griffin
Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
6y

@Erik E. You can search on the HUD website for fha approved lenders in your state. Google "fha lender list search hud" to find them. Are you planning on doing any renovations? If so, that's a fha 203k loan product and the lender list gets even smaller. I have done quite a bit of research as I'm planning to use this loan product myself once I find the quadplex I want. Feel free to message me to talk through it.

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  • Sarah Brown
    Real Estate Agent · Nampa, ID · Member since 2017 · 439 posts · 361 votes
    6y

    I would check with your real estate agent on which lenders they would recommend. Congrats on your first approval! 

    0Reply
  • Latasha Griffin
    Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
    6y

    @Erik E. You can search on the HUD website for fha approved lenders in your state. Google "fha lender list search hud" to find them. Are you planning on doing any renovations? If so, that's a fha 203k loan product and the lender list gets even smaller. I have done quite a bit of research as I'm planning to use this loan product myself once I find the quadplex I want. Feel free to message me to talk through it.

    1Reply
  • Erik E.
    OP
    Rental Property Investor · Orlando FL /Cleveland OH/Detroit MI · Member since 2019 · 52 posts · 32 votes
    6y
    Originally posted by @Sarah Brown:

    I would check with your real estate agent on which lenders they would recommend. Congrats on your first approval! 

     thanks Sarah!

    0Reply
  • Erik E.
    OP
    Rental Property Investor · Orlando FL /Cleveland OH/Detroit MI · Member since 2019 · 52 posts · 32 votes
    6y
    Originally posted by @Latasha Griffin:

    @Erik E. You can search on the HUD website for fha approved lenders in your state. Google "fha lender list search hud" to find them. Are you planning on doing any renovations? If so, that's a fha 203k loan product and the lender list gets even smaller. I have done quite a bit of research as I'm planning to use this loan product myself once I find the quadplex I want. Feel free to message me to talk through it.

     great thinking! ok cool I will send you over a DM. 

    0Reply
  • Michael Henry
    Rental Property Investor · Palm Bay, FL · Member since 2019 · 75 posts · 53 votes
    6y

    @Erik E. I used guaranteed rate mortgage for my duplex in Palm Bay , assuming if they do 2 units they wi do 4.

    0Reply
  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    6y

    @Erik E. always get a second quote.  I would always get a quote from an independent mortgage broker

    C2 Financial
    WebsiteView Page
    0Reply
  • Erik E.
    OP
    Rental Property Investor · Orlando FL /Cleveland OH/Detroit MI · Member since 2019 · 52 posts · 32 votes
    6y

    @Michael Henry

    Thanks for the input.

    0Reply
  • Brittany Burfict
    Flipper/Rehabber · New Orleans, LA · Member since 2019 · 16 posts · 0 votes
    6y

    @Latasha Griffin can you go to any bank and just apply for a fha loan for an investment property?

    0Reply
  • Latasha Griffin
    Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
    6y

    @Brittany Burfict No. Fundamentally, FHA loans are for borrowers who are purchasing a primary residence, not for investment purposes. However, if you agree to live in the property, you could qualify to use an FHA loan to purchase a 1-4 unit property (e.g. SFR, duplex, triplex or quadplex). To be eligible for an FHA loan, borrowers must meet the following basic lending guidelines: FICO score of 500 to 579 with 10% down or a FICO score of 580 or higher with 3.5% down. Your back-end debt ratio (mortgage, plus all monthly debt payments) should not exceed 43% of your gross monthly income. If there are tenants (with leases) in the property you're purchasing, you can usually use a portion (usually 75%) of the rental income in your debt to income calculation.

    0Reply
  • Brittany Burfict
    Flipper/Rehabber · New Orleans, LA · Member since 2019 · 16 posts · 0 votes
    6y

    @Latasha Griffin thank you for your response! I understand. I'm new to investing and I want to finance a duplex. What would be your advice for lending to purchase it? I've never did this before I just created my LLC so I don't know what comes next lol I'm having trouble with funding

    0Reply
  • Latasha Griffin
    Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
    6y

    @Brittany Burfict are you planning to live in the duplex and rent the other side out (this is known as "house hacking"). Or are you purchasing purely as an investment? They both require different loan types.

    I'd suggest your first purchase be a house hack so you can remove your own housing expense from your liabilities and have more money to pay down personal debt or save for future purchases.

    1Reply
  • Brittany Burfict
    Flipper/Rehabber · New Orleans, LA · Member since 2019 · 16 posts · 0 votes
    6y

    @Latasha Griffin the duplex would be my first big purchase but I have 3 mobile homes that I bought that I am renting out. I would rather it be for investment purposes only. Right now I’m not too interested in staying in the duplex

    0Reply
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