FHA, multi family is seeming impossible

[Devon Yates]

I'm trying to buy my first house hack via FHA and am finding it almost impossible so far. I have a good job and am increasing my savings fairly quickly but am having a hard time either a) finding sellers that accept FHA or b) getting out done by someone with conventional financing. I actually had an offer accepted but the sellers pulled out at the last moment. And just recently I got close with a duplex in Carson but the other offers were conventional financing. I could easily get a cheap house or a condo right now but I really don't want to do that. Any success stories recently? I need to know there is hope. Or not lol.

[Kayla Gatmaitan]

Hi @Devon Yates! As mentioned above, the market is shifting and giving more buyers the opportunities to have their FHA/VA loans get accepted from Sellers. If you are looking at purchasing a duplex using an FHA loan another alternative is buying a SFR with an ADU already built using a Freddie Mac loan with 5% DP. Freddie Mac just came out with an update last week letting homeowners use the income of the ADU as part of their qualifying income.

My clients are in the similar boat where they want to purchase a MF first and live in one unit using an FHA loan. One obstacle we are seeing is having low rents in the other units and not passing the 3-4 unit self-sufficiency rule with FHA.

I would definitively work with your agent and lender to strategies on how to present your offer in the best way possible in the beginning. That is what I do with all my clients and agent partners. Hope this helps!