Finally an easy one - Yes.

Yes you can buy a multi unit property with a renovation loan like the FHA 203k, Conventional Homestyle, VA Reno, or USDA Reno Loan.

2 Rules you need to be aware of!

1. Number of Units - You can buy a multi-family property with 2, 3, or 4 units. Once you get to 5 units the project becomes commercial and a new type of loan that is a little less fun becomes required.

2. Occupation - Owner occupied projects where you plan on living in one of the units will have a 3.5% down payments. Non-Owner Occupied projects will be subject to a much larger down payment like 20%-25%. Not as easy on the pocket book.

We see two different types of buyers in this category, for the most part.

1. Investors. We often see first time investors looking to capture their first property. Buying a multifamily using the FHA 203k is a GREAT way to get your portfolio started.

2. House Hackers - If you have not heard of this term....house hacking is buying a multifamily property and using the rents from the other units to cover all or most of your living expenses like the mortgage, utilities, and property taxes. This is a great way to get into a home that will appreciate in value and allow you to save for the next one, the dream home.

There are a million different ways to USE the reno loan. Buying a multifamily is just one. Give us a call if you want to learn how.