FHA Financing Information for Multi-Unit Properties (2-4 Unit Homes) in Palo Alto
Did you know that you can finance a 2-4 unit property in Palo Alto using an FHA loan? You can qualify for FHA financing as long as one of the units is owner occupied, meaning you live in one of the units and use the additional units as rental property. Here are a couple of the basic rules about FHA loans for Multi-Unit Properties:
1. FHA will finance up to 96.5% of the value of a 2-4 unit home for either a purchase or refinance. The rental income from the remaining (non-owner occupied) units can assist buyers in qualifying of the mortgage. All FHA mortgage loans are for owner occupied homes only meaning you will need to live in the property. You can not use an FHA loan for strictly investment or rental property.
2. FHA loan guidelines do not specify a maximum sales price but there is a maximum loan amount allowed for this type of property. The actual maximum FHA loan amount will depend what state and county the property is located.
The current maximum loan amount for FHA loans in Palo Alto-Santa Clara County (San Jose-Sunnyvale-Santa Clara MSA) are as follows:
Two-Family Homes – $934,200
Three-Family Homes- $1,129,250
Four-Family Homes- $1,403,400
This information is current as of the writing of this article. You can research the current FHA maximum loan amounts for Palo Alto and Santa Clara County (or any other area) on the FHA website.
If you are looking for general data on rents for the additional units in your home, you can start here: Final FY 2010 Fair Market Rent Documentation System. The actual rents that you would be able to charge for renting out the additional units in your 2-4 unit home require more information. You may contact Gwen for additional information.
Multi-Unit Homes for Sale in Palo Alto
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