Posts Tagged ‘fourplex’

Can I use an FHA backed Mortgage to purchase a duplex, Triplex or Fourplex in Seattle?

8th February

2009

written by robgraham

I received a great question from a hopeful Seattle home buyer and thought that many of you may have the same question. The question was:

“Can I use an FHA backed mortgage to purchase a

multi unit home, such as a

duplex, triplex or fourplex in Seattle?”

The answer is YES, and there is even better news!

FHA loans are the best financing option available for most Seattle home buyers right now and represent the majority of new loan applications. It requires you to only put 3 1/2% down at closing as a down payment, and has far more liberal rules regarding how much and who can assist with the down payment and closing costs. For more info on FHA loans, check out my post:

Best Financing Options for Seattle Home Buyers: FHA Loans

But yes, FHA loans can be used to purchase a duplex triplex or fourplex. No only that, but unlike other types of loans, with an FHA loan you can use the expected income from the other units to help you qualify for the loan. This allowance may allow Seattle home buyers to purchase a multi unit dwelling and rent out the additional units. The allowance does not apply to a dwelling that has more then four units. By law, a building with 5 or more units is a commercial property and requires entirely different financing and FHA rules no longer apply.

Give me a call if you would like to receive a list of duplex, triplex and fourplex units available in Seattle.