Stewardship Capital
2-to-4 Unit Properties and House Hacking
House hacking means you buy a duplex, triplex or fourplex, live in one unit and rent out the others. The rent can help cover the cost of owning. This page explains how financing works when you plan to live there.
What is house hacking?
House hacking is living in part of a property and renting the rest. A duplex has two units. A triplex has three. A fourplex has four. You live in one and tenants live in the others. Their rent can help with the monthly cost of the property.
It is also a way for first-time buyers to start building wealth with a property that earns income. It does take work, and rent is never certain.
Can I use a regular home loan for a 2-to-4 unit property?
Yes, in many cases. FHA, VA and conventional programs all allow owner-occupied buyers to finance homes with two to four units. Because you live there, these are generally treated as owner-occupied loans, not investment loans.
Eligible veterans can look at our VA loans page. Each program has its own rules, and Stephen confirms which one fits.
What does owner-occupied mean?
It means one unit will be your main home. Programs set how soon you must move in and how long you must stay. Those details vary by program, so Stephen confirms them before you write an offer.
If you do not plan to live in the property, that is a different kind of loan. See our DSCR investor loans page for rental properties you will not live in.
Can rental income help me qualify?
Sometimes. Some programs let a lender count part of the expected rent from the other units toward your income. How much counts, and what proof is needed, varies by program.
Lenders often use the appraiser's estimate of market rent, existing leases or both. They usually count only a portion of the rent, because units can sit empty. Some programs also ask about landlord experience. Stephen explains the rules for the program you are considering.
Are there extra rules for three- and four-unit homes?
Some programs add extra tests or limits for three- and four-unit homes. Loan limits also depend on the county and the number of units. Start with our loan limits by county page, then ask Stephen how it applies to your property.
What will the appraiser look at?
The appraiser looks at the value of the whole property. On a multi-unit home, the appraiser often reports the market rent for each unit too. That report can matter when rental income is part of the plan.
What documents will I need?
Plan on the usual home loan papers, plus a few extras:
- Photo ID
- Proof of your income and savings
- The purchase contract
- Current leases and rent details, if the units are rented
- Information on the property's income and costs, if available
Can the seller help with costs?
Seller credits can be limited by the program and by how the home will be used. See our seller concession limits page and talk with your agent before you write the offer.
What should a house hacker plan for?
Plan for repairs, for a unit that sits empty for a while, and for savings to cover both. Good tenants take time to find. A cushion helps you sleep well. Realtors, ask your buyers about their plan early. It shapes the loan and the offer.
Frequently asked questions
Can I house hack with a VA loan?
Eligible veterans can use a VA loan for a home with up to four units, as long as they live in one of them. Stephen confirms eligibility and the specifics on your file.
Can I use an FHA loan for a duplex, triplex or fourplex?
FHA allows two- to four-unit homes for buyers who will live there. Programs can add extra rules for three and four units, so Stephen checks the details.
Will the lender count my future rent as income?
Maybe. Some programs allow part of the expected rent from the other units to count. How much and what proof is needed varies by program.
How long do I have to live in the property?
Each program sets its own timing for moving in and staying. Ask Stephen before you make an offer so you know the rule that applies.
What if I do not plan to live there?
Then it is an investment property, and different loans apply. Our DSCR investor loans page explains one option.
Thinking about a duplex, triplex or fourplex?
Tell Stephen what you are looking at and how you plan to live there. He will explain which programs may fit before you start touring.
Talk with StephenThis is not a quote, a commitment to lend or an offer of credit. Stephen Chakerian, NMLS #2193331 | Stewardship Capital, a team of Barrett Financial Group, L.L.C., NMLS #181106 | Equal Housing Opportunity.