Buy a 4-Plex withJust 3.5% Down
Live in one unit, rent the others. FHA multi-unit loans let you house hack your way to financial freedom—even if you've been denied elsewhere.
2-4 Unit Properties
Owner-occupied multi-family
Use Rental Income
Qualify with tenant cash flow
Manual Underwriting
Credit bumps? We can help
Self-Employed Welcome
Complex income? No problem
What Is"House Hacking"?
Buy a 2-4 unit property with just 3.5% down using an FHA loan. Live in one unit and rent out the others—your tenants help pay your mortgage while you build equity and wealth.
Find Your Property
Search for a duplex, triplex, or 4-plex in your target area. FHA allows 2-4 unit owner-occupied properties.
Get Pre-Approved
Apply for FHA financing with just 3.5% down. We'll use potential rental income to help you qualify for more.
Move In & Rent Out
Close on your property, move into one unit, and rent out the remaining units to qualified tenants.
Build Wealth
Rental income covers your mortgage. You build equity, gain landlord experience, and create passive income.
Real House Hacking Example
See how the numbers work in your favor
Purchase Price
$400,000
Down Payment (3.5%)
$14,000
Total Monthly Payment (PITI)
$3,200
Unit 2 Rent
+$1,200
Unit 3 Rent
+$1,200
Unit 4 Rent
+$1,200
Total Rental Income
$3,600/mo
Your Out-of-Pocket
$0/mo
Monthly Profit
+$400
You're living rent-free while building equity and getting paid!
BeenDeniedfor a Mortgage?
Big banks say no. We say let's find a way. Manual underwriting allows us to look at your complete financial picture—not just your credit score or debt ratios.
Self-Employed Borrowers
1099 income? Own a business? Variable income? We understand your situation and can work with complex income documentation.
- Bank statements accepted
- Profit & loss statements
- Alternative income verification
Credit Bumps or Thin Credit
Past bankruptcy? Foreclosure? Medical collections? Limited credit history? We look at the whole story and circumstances.
- Manual underwriting available
- Consider compensating factors
- Credit score as low as 580
High Debt-to-Income Ratio
Denied due to DTI? FHA allows rental income to offset your mortgage payment, effectively lowering your debt ratios.
- Count 75% of rental income
- More flexible DTI limits
- Compensating factors considered
First-Time Home Buyers
Never owned a home? Perfect! FHA is designed for you with lower down payments and flexible qualification standards.
- Low down payment required
- First-time buyer education
- Gift funds accepted
Recent Career Changes
Started a new job? Changed industries? We can work with shorter employment histories when there's a logical explanation.
- Case-by-case evaluation
- Job offer letters accepted
- Flexible documentation
Non-Traditional Income
Commission-based? Bonuses? Gig economy? Alimony or child support? We know how to document non-W2 income sources.
- Multiple income sources OK
- Creative documentation solutions
- Expert underwriting review
Don't Give Up on Homeownership
If you've been denied elsewhere, we want to hear your story. Our manual underwriting specialists review every application with a human touch—not just an algorithm.
FHA Multi-UnitFAQs
Get answers to the most common questions about FHA house hacking and manual underwriting
What is the minimum down payment for an FHA multi-unit loan?
FHA requires just 3.5% down for 2-4 unit owner-occupied properties if your credit score is 580 or higher. For credit scores between 500-579, you'll need 10% down.
Example: On a $400,000 fourplex, you'd only need $14,000 down (3.5%), compared to $80,000 (20%) on a conventional investment property loan.
Can I use rental income to qualify for the loan?
Yes! FHA allows you to use 75% of the projected rental income from the other units to help qualify for the mortgage. This significantly increases your buying power.
For example, if the 3 other units will rent for $1,200/month each, you can count $2,700/month ($3,600 × 75%) toward your qualifying income.
What is manual underwriting and when is it needed?
Manual underwriting means a real person reviews your complete financial picture instead of relying solely on automated systems. It's used when:
- You have past credit issues (bankruptcy, foreclosure, collections)
- You're self-employed with complex income
- Your DTI is higher than automated approval limits
- You have limited or no credit history
Manual underwriting considers compensating factors like strong cash reserves, low debt, and stable employment history.
Do I need to have rental property experience?
No! FHA does not require you to have prior experience as a landlord. Many first-time home buyers use FHA multi-unit loans as their entry into real estate investing. We can connect you with property management resources if you prefer a hands-off approach.
How long do I have to live in the property?
FHA requires that you occupy one unit as your primary residence for at least 12 months after closing. After that, you're free to move out and rent all units, or even sell the property.
You must move in within 60 days of closing and intend to make it your primary residence at the time of purchase.
What if I've been denied by another lender?
We specialize in helping borrowers who've been denied elsewhere. Big banks often use rigid automated systems that reject applications without considering the full context.
Our manual underwriting team reviews each application individually and looks for compensating factors that might offset any concerns. We've helped hundreds of borrowers get approved after being told "no" by other lenders.
Can I use gift funds for my down payment?
Yes! FHA allows you to use 100% gift funds from family members for your down payment and closing costs. The donor must provide a gift letter stating that the funds don't need to be repaid. This makes FHA loans even more accessible for first-time buyers.
What credit score do I need for an FHA loan?
FHA's minimum credit score is 580 for 3.5% down or 500 for 10% down. However, with manual underwriting, we can often work with borrowers who have:
- Past bankruptcy or foreclosure (after waiting periods)
- Limited credit history or "thin file"
- Collections or charge-offs that have been addressed
Every situation is unique—contact us to discuss your specific circumstances.
Still Have Questions?
Our FHA specialists are here to help. Get personalized answers and guidance for your unique situation.
Ready to Start YourHouse Hacking Journey?
Don't let low down payment or past credit issues stop you from building wealth through real estate. Our FHA specialists are standing by to help you get approved.
Limited Time: Interest rates and FHA programs can change. Lock in your opportunity to house hack with today's rates.