Get FHA Loan on 2-4 Unit Property in California is a post from: FHA,VA and Conventional Home Loans in all 50 States

FHA loan guidelines allow for very generous financing options for buying a duplex, triplex or fourplex with a 3.5% down FHA loan in California.  This can be a great way for a business minded home buyer to get started with a property that will turn into a great investment over time.

Below are some of the FHA loan requirements for qualifying for a 3.5% down FHA home loan on a 2-4 unit property in California:

• You MUST occupy one of the units as your primary residence.  FHA loans are NOT investment loans and are only for owner occupants
• FHA loan limits for many Coastal California areas such as Los Angeles, Orange County, San Jose, San Francisco and San Diego go up to:
  • $932,400 for a duplex
  • $1,129,250 for a triplex
  • $1,403,400 for a fourplex
• The FHA loan down payment is 3.5% only IF the total gross rents from all the units (even the one you will occupy) is equal or greater than the total housing payment (mortgage + property taxes + homeowners insurance).  If the total housing payment is higher than the gross rents, you will have to increase your FHA loan down payment until the gross rents are equal or great to the total housing payment
• You can use 85% of the gross rents from all the units you do not occupy as income to qualify for the loan

So those are some of the major FHA loan requirements to qualify to buy a 2-4 unit property with a FHA loan in California.   Here are some of the advantages to buying a 2-4 unit property with a FHA loan in California:

• The income from the other units could pay most if not all of the housing payment and you could live for free or close to that
• In a few years you could move out of the 2-4 unit property and you would have a nice investment for retirement with a low FHA 30 year fixed loan rate

So please give me a call at 858-922-7899 or send me an email at homeloan8@gmail.com if you have any questions about buying a 2-4 unit property in California with a FHA loan.

Below are some of the most up-to-date advantages of FHA loans in California:

1. FHA loan rates are still near 60 year lows
2. FHA loan down payment is only 3.5% and can be a gift from a relative
3. FHA loans allow for non-occupant co-borrowers to help you qualify
4. FHA loan qualifications are the most flexible with debt-to-income ratios

Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)

858-922-7899

homeloan8@gmail.com

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