CalculateRealEstateROI

Financing · Guide

FHA Loans for House Hacking

3.5% down FHA financing on 2–4 unit owner-occupied — the cheapest entry path.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • 3.5% down.
  • 2–4 unit owner-occupied.
  • 580 credit min.
  • MIP for loan life.
  • Strong first-property strategy.

Core concepts

Owner-occupancy

Must live 1 year+.

Property type

Up to 4 units.

MIP

0.55% annual.

Step-by-step framework

  1. 1Pre-qual.
  2. 2Find 2–4 unit.
  3. 3Self-sufficiency test for 3–4 units.
  4. 4Close + move in.

Common mistakes to avoid

  • Skipping self-sufficiency calc.
  • Violating owner-occupancy.

Frequently asked questions

Min down?

3.5%.

Max units?

4.

Owner-occupy length?

1 year minimum.

MIP removal?

No — refinance to conventional.

Action checklist

  • ☐Pre-qual.
  • ☐2–4 unit target.
  • ☐Self-sufficiency test.
  • ☐Move-in plan.

More from Real Estate Financing

Real Estate Financing Best Practices
Match loan term to hold period, optimize APR not rate, and plan the refinance ladder.
Common Financing Mistakes
Wrong product, wrong term, wrong lender — financing errors are expensive and slow to fix.
Beginner's Guide to Real Estate Financing
First loan — pre-approval, document prep, and product selection for new investors.
Advanced Real Estate Financing
Portfolio loans, blanket mortgages, lines of credit, and private capital — scaling beyond conventional.
Financing Resource Center
Mortgage calculator, comparison tools, and lender directories for capital stack decisions.
Conventional Investor Loans
Fannie Mae and Freddie Mac investor loans — cheapest rate, strictest qualification, capped at 10.