Who it is for
- House hackers who want one unit’s rent to cover most of the payment
- First-time buyers priced out of single-family homes
- FHA buyers using 3.5% down on a two-unit property
- Investors adding a small, manageable rental
Typical Duplex Loans requirements
| FHA down payment | 3.5% for 1–2 units with 580+ credit (10% if below 580) |
|---|---|
| Conventional down payment | Typically 5–15% owner-occupied; 15–25% investor |
| VA on a duplex | 0% down for eligible borrowers who occupy one unit |
| Rental income counting | Lenders typically count 75% of market rent (per the appraiser’s rent schedule) toward income |
| Self-sufficiency test (FHA) | The full payment must be covered by 75% of the rent at LTVs above 75% on 3–4 units; two-unit properties avoid this test |
| Minimum credit | Typically 620+ conventional, 580+ FHA |
| Reserves | Often 2–6 months required on 2-unit purchases |
| Maximum units, residential | 2 units stays fully residential; Fannie/Freddie cover up to 4 |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Get pre-approved and confirm the loan program allows two-unit properties.
- Make an offer. The appraiser values the duplex as a 2-unit property and completes a rent schedule (Form 1007).
- The lender counts 75% of the market rent as income against the new payment.
- Meet the property condition standards for your program (FHA has specific habitability rules).
- Close, move into one unit, and rent the other.
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Pros and cons
Advantages
- Lowest-barrier entry to rental income: live in it, rent half
- Rental income boosts qualifying power
- Two-unit properties keep the simplest program rules
Trade-offs
- You are a live-in landlord: tenant turnover is personal
- Two rents means one vacancy halves the income
- Program habitability standards can require repairs before closing
Documents you’ll need
- Standard purchase documentation: ID, income, assets, tax returns
- Appraiser rent schedule (lender orders)
- Existing lease if the other unit is occupied
- Proof of reserves
Duplex Loans FAQ
Can I buy a duplex with an FHA loan?
Yes. FHA allows 3.5% down on one- and two-unit properties for owner-occupants with 580+ credit. You must live in one unit for at least a year.
How much rental income can I count?
Most lenders count 75% of the appraiser’s market-rent figure. On a purchase with no lease, the rent schedule estimate is what counts.
Does the self-sufficiency test apply to duplexes?
No. FHA’s self-sufficiency test (rent must cover the payment) applies to 3–4 units at high LTVs. Two-unit properties are exempt, which is one reason duplexes are the cleanest house hack.
Can I use a VA loan on a duplex?
Yes, eligible veterans can buy a two-unit property with 0% down and no monthly mortgage insurance, as long as they occupy one unit.
Do I need landlord experience to buy a duplex?
No. Lenders qualify you on the rent schedule and your income; prior landlording is not required for 2-unit purchases.
Can I buy a duplex as a pure investment property?
Yes. Conventional investor loans typically need 15–25% down, or a DSCR loan qualifies on the property’s rent alone with 20–25% down.
How much are closing costs on a duplex?
Similar to a single-family purchase, typically 2-5% of the price. FHA upfront MIP applies just like on a house.
Can I convert a single-family home into a duplex?
Only with proper zoning and permits. Unpermitted conversions are a hard stop for lenders, the certificate of occupancy must show two units.
What insurance do I need?
A landlord or duplex-specific policy covering both units, plus liability. It costs more than a standard homeowner policy, budget 20-40% more.
Official sources
How Duplex Loans compare
| Duplex Loans | Triplex Loans | Fourplex Loans | FHA Loans | |
|---|---|---|---|---|
| Best for | House hackers who want one unit’s rent to cover most of the payment | House hackers scaling past a duplex | House hackers maximizing doors on a residential loan | First-time buyers |
| Down payment | 3.5% for 1–2 units with 580+ credit (10% if below 580) | 3.5% with 580+ credit for owner-occupants | 3.5% with 580+ credit for owner-occupants | , |
| Credit | Typically 620+ conventional, 580+ FHA | Typically 620–680 conventional, 580+ FHA | , | 580 for 3.5% down; 500–579 with 10% down |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Triplex Loans
A triplex is a three-unit residential property.
Fourplex Loans
A fourplex is four units on one lot, the largest property still financed with residential mortgages.
FHA Loans
An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
Investment Property Loans
An investment property loan finances a 1-4 unit rental you do not live in.
Multifamily Loans (5+ Units)
A multifamily loan finances apartment buildings with five or more units and is underwritten as a commercial loan on the property’s net operating income (NOI).