Loans for 2-4 units
| Loan | Minimum down | Notes |
|---|---|---|
| FHA | 3.5% | 3-4 units must pass a self-sufficiency test: rent must roughly cover the payment |
| Conventional (Fannie Mae) | 5% | Owner-occupied 2-4 units, reserves and credit rules apply |
| VA | $0 | Eligible veterans and service members, 1-4 units you live in |
What to check
- Current leases, rents and deposits for each unit
- Separate meters or how utilities are split
- Roof, sewer line, heating and the age of big systems
- City rental license and inspection rules
- Whether rents are near market or below it
Where to look
Duplexes and fourplexes are more common in older parts of Denver, Aurora, Lakewood, Colorado Springs, Greeley and Fort Collins. We set up a search and send matches with a house hack estimate (links go to Homes.com).
Questions people ask
Can rent from the other units help me qualify?
Often yes. Lenders usually count a share of the expected rent, commonly 75%, from the units you will not live in. Your lender confirms the exact rule.
What is the FHA self-sufficiency test?
On FHA loans for 3-4 unit homes, the expected net rent from all units must be enough to cover the total monthly payment. Many Front Range fourplexes fail it, so ask a lender to check before you offer.
Can I buy a fourplex with 5% down?
Fannie Mae allows as little as 5% down on owner-occupied 2-4 unit homes for qualified buyers. You still need reserves and to meet credit rules.
See your real numbers in 2 minutes
Plug in a price and rents and see what you would really pay to live there. Then book a free 30-minute strategy call with Simon or Ewelina.
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