FHA Loans For Duplexes

A large percentage of mortgages being written in this market are FHA loans. Duplexes and triplexes, where you live in one of the units, are eligible for FHA loans. If you’re not going to live in one of the units, then FHA financing is not available to you.

A great thing about FHA loans is that they are low down payment loans. The FHA will loan up to 96.5% of the value of a duplex. Also, the FHA will allow gifts from parents, relatives, a documented fried, or employer to cover the down payment.

Considering the difficulty in getting a conventional loan and the requirements for down payments of at least 20% in many cases, an FHA loan may be a viable option for you. In addition, if you buy a duplex, and qualify for the current home buyers tax credit, you can get the tax deduction on one-half the sales price of the property. See out article First Time Home Buyers $8,000 Credit for more information.

The FHA doesn not consider credit scores when making loans. They are looking for the ability to pay the loan. People who are currently under Chapter 11 banruptcy may also be able to purchase of duplex under FHA rules.

Another option may be a VA loan (as long as you live in one of the units). Don’t forget that this loan is not a one-time loan. It can be used multiple times. The down payment requirements are lower for VA loans as well.

So there are multiple options available for purchasing Daytona Beach duplexes. Don’t let financing be a roadblock.

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