Would an FHA 3.5% dp allow prefab/modular homes (multifamily)?

Question

I really like the look, design, and efficiencies that prefab/modular homes bring.

I was wondering how I could start house-hacking (build 4 units where I would live in one).

How would I go about doing so? What if I don't own some land outright? Say I have enough for a 3.5% ($14,000) downpayment for a mortgage of around $400,000. I would love to buy land and build a multifamily 4-unit prefab/modular home, and live in one of them while renting out the other three.

Problem is, I don't own any land, and have yet to choose any prefab/modular home-builder.

Where do I start?

How can I secure an FHA mortgage?

Sorry, pretty new to the whole real-estate thing. I just like the idea of house hacking as a way to start investing in real-estate, and loved the idea of living in a modular home. Just wondering if it was possible and how to go about starting

Thanks!

Matt Peebles · Answer

Jeromie, This is a great, creative idea. FHA does allow modular. So it can be done.

Just because FHA will insure that type of mortgage doesn't mean that the lender will lend money on it. You'll want to contact a local lender. Let them know you have a modular, 4-unit that needs financing. Can this be done on your FHA loan?

My company may have office down there. PM me if you want a referral.

I would also start talking with a builder and a realtor to get some information about zoning in your area to find out what can be done and where.

I'd be interested to know which builders you've looked at using on a project like this? This is a great idea.