Can I buy a multi-family with an FHA loan in Rhode Island?

Yes. You can buy a two-to-four-unit multi-family in Rhode Island with an FHA loan, as long as you live in one of the units as your primary residence. This is one of the biggest reasons FHA financing is so popular with first-time buyers here. The down payment can be as low as 3.5 percent of the purchase price, which puts our common two-family and triple-decker properties within reach even when a large cash cushion is not available. A few RI-specific things to know. First, occupancy is required. FHA is for owner-occupants, so you cannot use it for a pure rental you never live in, and you generally need to move in within 60 days and stay for at least a year. Second, the property has to pass an FHA appraisal and meet minimum property standards. Many of our older Providence and Pawtucket triple-deckers are wonderful but need work, and issues like peeling lead paint, unsafe wiring, or a failing roof can hold up an FHA deal until they are addressed. Pre-1978 buildings also carry lead disclosure and remediation rules under Rhode Island law. Third, FHA loan limits vary by county and are set annually, so the maximum you can borrow depends on where in RI you are buying and how many units the property has. Multi-unit limits are higher than single-family limits. One helpful angle is that FHA often lets you count a portion of the projected rent from the other units toward qualifying income, which can stretch what you can afford. That said, rents and returns are estimates until verified, and higher RI property taxes affect your monthly payment, so do not assume the rent will fully cover the mortgage without checking. Run the specific property through the cash-flow calculator, and contact David to connect with an FHA-friendly local lender and start touring two-to-four-unit homes.