fha loan for multi family home: a practical path to house-hacking

How it works

An FHA loan can finance a 2–4 unit property when you plan to live in one unit. Lenders may count projected rental income from the other units to help you qualify, making ownership more attainable than with many conventional options.

Eligibility and occupancy

You must occupy the home as your primary residence, typically within 60 days. Down payments can be as low as 3.5% with solid credit, and some lenders request cash reserves. For 3–4 units, a self-sufficiency test may apply, ensuring rents cover expenses.

Costs, limits, and rates

Expect up-front and annual mortgage insurance premiums, and remember county-specific FHA loan limits cap how much you can borrow. Rates are often competitive, but property condition must meet safety and habitability standards.

Getting started

If you’re eyeing a duplex, triplex, or fourplex, map out income, expenses, and contingencies before you shop.

• Check local FHA loan limits and estimated rents.
• Compare lenders on rates, fees, and overlays.
• Budget for repairs and reserves beyond closing.
• Run vacancy and maintenance scenarios.