Who it is for
- House hackers maximizing doors on a residential loan
- Investors who want four units without commercial underwriting
- FHA buyers in markets where fourplexes pass the self-sufficiency test
- DSCR investors qualifying a fourplex on its rent
Typical Fourplex Loans requirements
| FHA down payment | 3.5% with 580+ credit for owner-occupants |
|---|---|
| Self-sufficiency test (FHA) | At LTV above 75%: 75% of market rent must cover full PITIA |
| Conventional down payment | Typically 15–25% owner-occupied; 25% investor |
| VA on a fourplex | 0% down for eligible borrowers occupying one unit |
| Rental income counting | Typically 75% of appraiser’s market-rent schedule across all four units |
| Reserves | Often 6+ months required |
| DSCR option | 20–25% down, qualifies on rent alone |
| Commercial line | Five or more units moves to commercial/multifamily lending |
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
- Choose owner-occupied (FHA/conventional/VA) or investor (conventional/DSCR) financing.
- The appraiser values the property as a 4-unit with a rent schedule for each unit.
- FHA path: run the self-sufficiency test; 75% of total rent must cover the payment at LTVs above 75%.
- Conventional path: more down, no self-sufficiency test, stricter reserves.
- Occupy one unit within 60 days for owner-occupied programs; investors close as non-owner-occupied.
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Pros and cons
Advantages
- Four income streams on one residential loan
- Cheapest per-door entry in real estate investing
- Residential rates beat commercial rates
Trade-offs
- Self-sufficiency test is hardest to pass on fourplexes
- Highest reserves and down payments of the 2–4 unit set
- Four tenants means real property management work
Documents you’ll need
- Standard purchase documentation
- Appraiser rent schedule for all four units
- Existing leases if units are occupied
- Proof of reserves (often 6+ months)
Fourplex Loans FAQ
Can I really buy a fourplex with 3.5% down?
With FHA, yes, if you occupy one unit, but the self-sufficiency test applies at LTVs above 75%. In high-price markets the test often fails, which is why many fourplex buyers put 25% down or use DSCR.
Is a fourplex residential or commercial?
Four units is still residential lending: Fannie Mae and Freddie Mac programs apply. Five or more units becomes commercial multifamily lending.
How much rent income can I count?
Lenders count 75% of the appraiser’s market-rent estimate for all four units, including the one you will live in.
Can I use a VA loan on a fourplex?
Yes, eligible borrowers can buy up to four units with 0% down and no monthly mortgage insurance, occupying one unit as a primary residence.
What if I do not want to live there?
Non-owner-occupied conventional loans typically need 25% down; DSCR loans need 20–25% down and qualify on the property’s rent alone.
What is the biggest mistake fourplex buyers make?
Underestimating the self-sufficiency test. Run the math before you offer: 75% of market rent must cover the full payment at high LTVs, and expensive fourplexes often fail.
How much are reserves on a fourplex?
Often 6+ months of the full payment, more than duplexes. On a $3,000 payment, that is $18,000+ sitting in the bank after closing.
Can I manage four units myself?
Many owner-occupants do, but budget for the reality: four tenants means four times the maintenance calls, turnover, and late payments of a single rental.
Should I use FHA or DSCR on a fourplex?
FHA if you will live there and the property passes the self-sufficiency test. DSCR if you want no income docs or the test fails, with 20-25% down.
Official sources
How Fourplex Loans compare
| Fourplex Loans | Duplex Loans | Triplex Loans | Multifamily Loans (5+ Units) | |
|---|---|---|---|---|
| Best for | House hackers maximizing doors on a residential loan | House hackers who want one unit’s rent to cover most of the payment | House hackers scaling past a duplex | Investors moving up from 1–4 unit rentals |
| Down payment | 3.5% with 580+ credit for owner-occupants | 3.5% for 1–2 units with 580+ credit (10% if below 580) | 3.5% with 580+ credit for owner-occupants | , |
| Credit | , | Typically 620+ conventional, 580+ FHA | Typically 620–680 conventional, 580+ FHA | , |
| 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
Duplex Loans
A duplex is a residential two-unit property, and owner-occupants can finance one with as little as 3.5% down through FHA or with a small down payment through conventional programs, offered through our lender network where available.
Triplex Loans
A triplex is a three-unit residential property.
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).
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.