FHA loans can be used to buy multifamily homes with up to four separate housing units as long as you plan to live in one of those units. You still only need a 3.5% down payment to secure the loan and most of the requirements to qualify are the same as for a single-unit home, although higher loan limits apply. To get a multiunit FHA loan, you will need to meet the following requirements:

→ Credit score of at least 500. If your credit score is between 500 and 579, you can still get an FHA loan but you must make a 10% minimum down payment. Those with higher scores can put down just 3.5%.

→ 3.5% down payment. Those with credit scores of 580 or better can secure the loan with as little as a 3.5% down payment.

→ Stable income. Lenders usually want to see proof of at least two years’ worth of steady income and employment history, but you can include your potential future rental earnings in your application as well.

→ Debt-to-income ratio of 43% or less. Ideally, your total debt obligations should total less than 43% of your earnings.

→ Reside in one of the units. You can’t rent out all the units in your multifamily home. FHA loans require that at least one unit in the property be your primary residence for at least a year.

→ FHA mortgage insurance. All FHA loans require an upfront mortgage insurance premium equal to 1.75% of the total loan amount and an annual mortgage insurance premium of between 0.15% and 0.75% of the loan amount.

→ Get an FHA appraisal. You must purchase a $400 to $700 FHA appraisal of the home to verify its value and condition before the loan can be approved.