3+2=4plex? (!) - Posted by gary

Posted by Les Kline on October 05, 2003 at 10:13:49:


  1. FHA, and an appraiser, would look at not only how the unit is being used, but what it’s designed or intended use is. As long as it looks and smells like an apartment, it will be classified as an apartment.

  2. If you actual do modify it for some other use, then you run into the problem of it being classified as a mixed-use property and you’re into a commercial loan.

  3. The only sure and legal way (that I can see) of getting past these obstacles would be to integrate the space of the fifth unit into the living area of the other units, so that in fact there are only 4 residences. This would require changes to your zoning and tax records, as well as possible changes in the appraised value.

Hope this helps.


3+2=4plex? (!) - Posted by gary

Posted by gary on October 04, 2003 at 20:36:35:

I have found a property that has a duplex and a triplex.

I would like to get a FHA loan on this property if possible because:

  • one unit will be my personal residence
  • 3% down w/FHA
  • FHA 203k for rehab

I understand that FHA will only loan up to a 4plex if one unit is used for personal residence.

My question is this…could we call the duplex a duplex and then call the triplex a duplex and the extra unit would be used as an office/community meeting room/exercise room? This would then equal a 4plex. No rent would be collected from the multi purpose unit.

Do you think I could get an FHA loan for this property? And how hard is it going to be to get this property reclassified as a 4plex w/ an office multi purpose unit?

Go ahead and shoot me down. I’m ready!