Fourplex Investing Using an FHA Loan
Hey BP! I have a question for anyone who understands FHA loans. My wife and I are looking to use an FHA loan to purchase a fourplex somewhere in Salt Lake or Utah County, but fourplexes are a little out of our price range. So here's my question: can I partner up with someone to buy the fourplex and still use the FHA loan? If so, does that person also have to be a first time homebuyer?
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I'm a lender! With FHA it needs to be a primary residence. Also for a 4-unit it needs to cashflow. This means the total rents on the property (for all 4 units) discounted to 75% per lending law need to be greater than your total PITIA payment. So to clarify, you cannot partner with someone unless you are living in it together. :)