Multi-Family – First-Time Homebuyer: My underwriter has told me that a First-Time Homebuyer is NOT eligible to purchase a 3-4 Family Home with FHA. Is that true?
Answer: Not allowing a First-Time Homebuyer to purchase a 3-4 unit property is definitely an overlay to FHA. They have no such prohibition. FHA allows first-time homebuyers to purchase a 2-4 family home as their first home. To summarize the unique 3-4 unit purchase requirements, they are as follows: 3 months of reserves are required […]