Multifamily · 2–4 Units

Live in one unit. Let your tenants help pay the mortgage.

Buy a duplex, triplex, or fourplex, move into one unit, and rent out the others. The rent from your tenants can cover a big share of your payment, and in some cases most of it, while you build equity in a property you actually live in.

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3.5%

Down with FHA (2–4 units)

Down with VA (eligible veterans)

2–4

Units you can buy and live in

Broker Fees

Your home can help pay for itself

Most people buy a home and then pay for it every month out of their own paycheck. Owner-occupied multifamily flips that. You buy a property with two to four units, live in one, and collect rent on the rest.

Because you're living in the building, you get primary-residence financing: lower down payments and better rates than a typical investment property loan. The lender also counts a share of the expected rent when it calculates what you qualify for, so a multifamily can often stretch your buying power further than a single-family home at the same price.

Many buyers call this “house hacking.” Some use it to lower their housing costs while they save. Others use it as the first step toward owning rentals. Either way, you're building equity from day one.

What it can look like: a triplex

Illustration only, using an assumed 6.5% rate. Not a rate quote.

Purchase price$600,000

FHA down payment (3.5%)$21,000

Principal & interest≈ $3,720

FHA mortgage insurance≈ $270

Property taxes & insurance (est.)≈ $750

Total monthly payment≈ $4,740

Rent from the 2 other units ($1,900 each)− $3,800

Your out-of-pocket housing cost

≈ $940 / month

Actual rents, vacancies, repairs, and maintenance will vary, and rental income isn't guaranteed. We'll run the real numbers for your target property and area.

Loan options for owner-occupied multifamily

Which one fits depends on your credit, savings, and whether you've served. We compare them side by side so you can see the real cost of each.

Lowest down payment

FHA

2–4 units
3.5% down
Min. 580 credit score
Gift funds allowed
Non-occupant co-borrowers allowed
3–4 units must meet an FHA rent self-sufficiency test

Veterans & service members

VA

2–4 units
0% down
No monthly mortgage insurance
Competitive rates
You must live in one unit
Eligible veterans, active duty & surviving spouses

Stronger credit & savings

Conventional

2–4 units
Typically 5% down (2 units), 15% down (3–4 units)
Better pricing with higher credit
Mortgage insurance cancellable
Rental income counted toward qualifying

Duplexes and down payment assistance: if you're buying a 2-unit property, our FHA MaxONE DPA program can cover the down payment. It applies to 1–2 unit primary residences only. 3–4 unit properties are not eligible.

How lenders count your rental income

When you apply, the lender doesn't just look at your paycheck. It can also count income from the units you'll rent out, which helps you qualify for more house.

Lenders typically count about 75% of the expected market rent. The other 25% is held back to allow for vacancies and upkeep. The appraiser documents market rents for each unit, and signed leases on existing tenants can support the numbers.

Example: two rentable units at $1,900 each is $3,800 in market rent. A lender may count roughly $2,850 of that toward your qualifying income.

What to know before you buy

You live there

Owner-occupied loans require you to move into one of the units, typically within 60 days of closing and for at least a year.

Reserves matter more

Lenders often want to see a few months of payments in savings after closing, especially on 3–4 unit properties.

Plan for the unexpected

Set aside money for repairs and the occasional vacant month. We help you budget for it up front.

Landlord rules vary

DC, Maryland, and Virginia each have their own rental rules. A local real estate attorney or agent can walk you through them.

Who owner-occupied multifamily is a good fit for

🏠

First-time buyers

Get into a home with a low down payment and have tenants help with the monthly cost.

🎖️

Veterans

Pair your VA benefit with a multifamily for 0% down and rental income.

📈

Future investors

Start a rental portfolio with a property you live in, then add more over time.

👨‍👩‍👧

Multigenerational households

Keep family close with separate units under one roof, and one of them can be rented out later.

Common questions

Can I really buy a 4-unit with 3.5% down?

Yes, with an FHA loan, as long as you live in one of the units. For 3–4 units, FHA also requires the property's net rental income to meet a self-sufficiency test. We'll tell you up front whether a specific property passes.

Do I have to already have tenants?

No. Lenders can use the appraiser's market rent for vacant units. If tenants are already in place, their leases can help support the numbers.

What if I want to move out later?

Many buyers keep the property as a full rental after living there for the required period and buy their next home with a new loan. We can plan for that from the start.

What about buildings with 5 or more units?

Those are financed as commercial or investor properties rather than with owner-occupied programs. See our DSCR and commercial loan pages for those options.

Looking at a 5+ unit building or a pure rental? See DSCR investor loans and commercial loans.

Find out what a multifamily could do for you.

Tell us what you're looking at. We'll run the numbers on your payment, your rental income, and the loan that fits best, at no cost to you.

Free payment and rent-offset breakdown

FHA, VA & conventional compared side by side

$0 broker fees

Licensed in DC, MD & VA

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