FHA Loans for Manufactured, Mixed-Use, and Multi-Unit Homes
Can I Use an FHA Loan to Buy a House With More Than One Unit?
Yes. This is an allowed use of the FHA single family home loan program. Buyers can purchase a home with an FHA mortgage with up to four living units.
Can I Use an FHA Loan to Buy a Multi-Unit Home I Can Rent Out to Others?
Yes, but only if you agree to live in at least one of the living units. Occupancy is a requirement for FHA mortgages.
Can an FHA Loan Be Used for a Business?
No, but you can use an FHA mortgage to buy a mixed-use or mixed-zoning property as long as the structure's purpose is primarily residential.
The non-residential use of the property must be restricted to a small percentage dictated by FHA loan guidelines. If more than 25% of the floor space is used for non-residential purposes, you risk being denied an FHA mortgage, depending on the circumstances. Your experience may vary.
Can I Use an FHA Loan to Buy a Condo or Townhouse?
Yes, as long as the property meets FHA minimum standards and is otherwise allowable under FHA loan rules.
Can I Buy a House With an FHA Mortgage With No Money Down?
The FHA and your lender expect a down payment of at least 3.5% of the price of the home. That does not mean your down payment has to come out of your own pocket when buying existing construction homes. You can use an approved down payment assistance program or get help from friends and family.
Can I Buy an Older Home With an FHA Mortgage?
Yes. There are age restrictions on manufactured housing, but not typical suburban houses.
Can I Get an FHA Mortgage to Buy a Mobile Home, Manufactured Home, or Modular Housing?
Yes, but know that some housing markets don’t support such loans due to a lack of demand or lender interest. Much will depend on the lender and the market.
For more information on these issues, talk to a participating FHA lender or contact the FHA directly. You can also learn more about FHA loan credit requirements.
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