FHA Not Allowed On A Multifamily In NJ??

Question

Hello BP community!

I applied to get pre-approved by Better Mortgage for a multifamily property (2 - 4 units) in New Jersey (Im looking to specifically get a duplex).

However the loan went through as conventional. I emailed the loan officer why it didn't go through as an FHA loan (which is what I specified).

She replied saying that 2-4 unit properties are not eligible for FHA loans in NJ.

I am new to real estate investing and this will be my first house-hack.

Has anyone here financed a multifamily in NJ with an FHA loan?

Are multifamily homes not eligible for FHA loans in the state of New Jersey?

Happy to hear everyone's responses and experiences!

Joseph Guzzardi Jr · Answer

@Tyler George that isn't true at all. People buy multi family homes in NJ with FHA all the time. Let me know if you have any further questions.

Jonathan Greene · Answer

Not correct. Half the people house hacking their first multi in NJ do it with an FHA loan. They may be saying that they can't do it for you on an FHA, which is different. I would confirm if they are really saying that FHA on multi doesn't work (which is a complete lie) or they can't do it for you based on the numbers although I can't see why.

Joseph Guzzardi Jr · Answer

@Tyler George I should add you need to be occupying the property for FHA

Tyler George · Answer

@John C. Yeah the loan officer got back to me with an apology. She said that it's Better's policy not to give FHA loans on MFH, not an FHA policy like she said in her previous email.

John C. · Answer

@Tyler George

A FHA lender has the option to not to include MFH   for lending.

Piero Principe · Answer

@Tyler George

I recently bought a 2 family house in kearny nj, using an fha loan. I put down more than 3.5% so I can compete in this market though.

Tyler George · Answer

@Piero Principe Thanks for the info and advice! I'll keep that in mind.

Shiva Bhaskar · Answer

You can totally house hack with an FHA loan in NJ or anywhere else. The loan officer is wrong.

I used to live in the NYC / NJ area. If you want me to share the name of a friend who's a great loan officer, please feel free to DM me and I'll be happy to do so. I imagine he could help with this, and he's top notch.

Gaetano Ciambriello · Answer

Hi @Tyler George - that is not true. I am happy to chat if you have any questions on house-hacking, FHA loans and other financing questions.

Tyler George · Answer

@Alan Lacey Thanks for your response. It definitely helps knowing this.

FHA Not Allowed On A Multifamily In NJ??

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