LICENSED IN VA · MD · DC · CA · FL · TX · WV ·
Multi-Family Loans
Duplex, Triplex, and 4-Unit Financing for Investors and House-Hackers
INTRODUCTION
What loan programs are available for 2-4 unit properties?
Multi-family 2 to 4 unit properties qualify for FHA loans at 3.5% down when the buyer occupies one unit as their primary residence, VA loans at $0 down for eligible veterans who occupy one unit, conventional loans at 15 to 25% down for investors or owner-occupants, and DSCR loans for non-owner investors qualifying on combined rental income from all units. LLC entity lending is available on DSCR multi-family programs.
Buying a duplex, triplex, or fourplex is the most efficient path to real estate investing for most first-time buyers — live in one unit, rent the others, and let your tenants offset most or all of the mortgage payment. This strategy is called house hacking and it is available with FHA financing at 3.5% down, VA at $0 down for eligible veterans, and DSCR for investors who want the income without the occupancy requirement.
The NAR reports that 56% of repeat buyers sold their previous home before purchasing their next one in 2023 — often under price pressure. The buyers who moved up without a sale contingency — using bridge loans or multi-family house hacking to generate rental income — had dramatically more flexibility in their purchase timeline and price negotiation.
THE HOUSE-HACK MATH
The Financial Case for House-Hacking With FHA or VA Financing
An owner-occupant buyer purchases a 4-unit property at $400,000 with FHA’s 3.5% down payment — $14,000 upfront. Living in one unit and renting the other three at $1,500 each produces $4,500 per month in rental income. The FHA mortgage payment on a $400,000 purchase at 7% is approximately $2,800 per month including MIP. Net monthly housing cost after rental income: $0 to negative — the tenants effectively pay the mortgage. Over 5 years, the equity built on the $400,000 property plus the rental income accumulated creates a wealth-building result impossible to replicate by renting. A VA-eligible veteran accomplishes the same with $0 down.
THE 3 QUESTIONS MULTI-FAMILY BUYERS ASK MOST
FHA allows 75% of the market rent from non-owner-occupied units to be added to your qualifying income. On a 4-unit where three units rent at $1,500 each, 75% of $4,500 equals $3,375 per month in additional qualifying income. This significantly reduces the income required to qualify for the loan — making the larger purchase accessible on a single income.
Yes. VA purchase loans cover 1 to 4 unit properties when the veteran occupies one unit as their primary residence. A VA-eligible veteran can purchase a fourplex with $0 down, live in one unit, and collect rent from the other three. This is one of the most powerful wealth-building strategies available to VA-eligible buyers.
DSCR on multi-family uses the combined rent from all units divided by the total PITIA payment. A duplex with two units renting at $1,500 each produces $3,000 per month combined income. If the PITIA is $2,400, the DSCR is 1.25 — a strong qualification ratio. The combined income from multiple units often produces better DSCR ratios than single-family properties at the same price.
Buy a Duplex. Live for Free. Build Equity While Tenants Pay the Mortgage.
FHA at 3.5% down. VA at $0 for eligible veterans. DSCR for non-owner investors. LLC entity lending available. Access Financial originates all four multi-family programs across all 7 licensed states.