Can FHA be used for 2 to 4 unit homes?
Yes, for owner-occupied 2–4 unit properties. The down payment is still 3.5% (with 580+ FICO) on most of these.
What this actually means.
FHA's 'self-sufficiency rule' applies on 3–4 unit properties — projected rental income from the non-owner units must cover the proposed mortgage payment. That changes how you underwrite the deal.
Where this can move.
Property classification (single-family, condo, manufactured, 2–4 unit), occupancy, FHA program flavor (standard FHA vs 203k), and lender capability can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.