FHA Loan Can Solve The 2 to 4 Unit "Primary Residence Mortgage Misery".

Real Estate Agent with Balboa Real Estate San Diego, CA

Guest Blogger Financial Writer Angelina Brown from Chicago:


2 to 4 Unit properties basically consist of two, three or four separate residences on the same real estate lot. These 2 to 4 unit properties are very profitable for real estate investors. Not only for regular investors, but for normal home buyers also 2 to 4 unit properties can be really lucrative.

What must you maintain to get an FHA mortgage loan for a 2 to 4 unit property?

You can easily get Federal Housing Administration approved mortgage loans to obtain a 2 to 4 unit property. Only you need to meet some important criterion. They are described below:

·         First of all, you have to utilize one of the units as your primary residence.

·         You may use only 75% of the rental income of the property.

·         Your debt-to-income ratio must be at per with the FHA requirements.


Why FHA loans are beneficial for 2 to 4 unit primary residence mortgage?

Following are the 3 benefits that you may enjoy by taking up an FHA mortgage loan for 2 to 4 unit primary residence:

1.      The reasonable down payment: This is definitely a good news for prospective home buyers. FHA requires the borrower to pay only 3% down payment for 2 unit properties and 15% down payment for 3 and 4 unit properties. So, home buyers don’t need to worry much about the down payment.

2.      Rental income can be used for qualification: Home buyers may increase their purchasing capacity by using the income they are getting from the property rent. The rent that you’ll get from the other units can be used to pay off the mortgage loan on the primary unit of residence.

3.      The affordability increases for buyers: The government approved mortgage loan will not only ensure you safety but your mortgage payment also may get easy. The rules and regulations have been designed keeping home buyers demand in mind. So, there is hardly any chance of inconvenience or trouble.

The benefits you may fetch from 2 to 4 unit Primary Residences:

2 to 4 unit properties are more profitable than single family properties. You may get rental income from the units you’re not using and utilize that rent for either your monthly mortgage payments or for strong financial future. So, by obtaining a 2 to 4 unit property you can get a primary residence for yourself and ensure great investment benefits for your entire life. That’s why real estate investors find 2 to 4 unit properties so profitable.

If you’re a first time home buyer and feeling apprehensive about taking up a mortgage loan for a 2 to 4 unit property, then consult any experienced professional. With proper consultation and complete knowledge about FHA mortgage loan terms, you may go ahead for a lucrative real estate investment.

Angelina Brown is a professional financial writer from Chicago.She loves to contribute financial write ups to websites and blogs so that she can help people who are struggling with financial worries. She has written various articles on mortgage, refinance, real estate and so on. For more information on mortgages :http://www.mortgagefit.com

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Hogue and Belong Realty-Bankers Hill

San Diego, CA


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Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

Spreading the vacancy rates between several units often means that there is NO month with NO cash flow

Feb 23, 2013 07:13 PM #1
Balboa Real Estate San Diego, CA - San Diego, CA

Wallace---You got that right. In SD the vacancy rate at many nice urban complexes hovers around ZERO. In 14 years I could count on the fingers of one hand how many vacant weeks I have had in my 4-plex.....and those are just between tenants to clean, paint and renovate.

 But the key to all of this is: Good Management, because without this, even the best property can fail.

Feb 24, 2013 12:56 AM #2
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