House hacking on the Seacoast: how to buy a 2–4 unit home with an FHA loan

A duplex can be one of the smartest first purchases on the Seacoast. Here's how owner-occupied FHA financing works, and what to watch for.

"House hacking" means buying a small multifamily property, living in one unit, and renting the others so your tenants help cover the mortgage. The Seacoast's older neighborhoods have plenty of two-family homes, which makes this strategy worth a serious look.

How FHA multifamily loans work

A standard FHA loan can finance a duplex, triplex or fourplex as long as you live in one unit as your primary residence. With a qualifying credit score of at least 580, the minimum down payment is 3.5%, the same as a single-family home, according to Lower.

• Occupancy: at least one borrower generally moves in within 60 days of closing and plans to stay at least a year.
• Rental income: projected rent from the other units may help you qualify, per Rocket Mortgage.
• 3–4 units add a test: the lender takes fair market rent for all units, subtracts at least 25% for vacancy and maintenance, and the remainder must cover the full mortgage payment. You'll also need three months of payments in reserve after closing, as Rocket Mortgage explains.

New Hampshire options to stack

NH Housing's programs cover 1–4 unit primary residences, and its conventional loans allow 5% down on 2–4 units, according to NH Housing. First-generation buyers may also qualify for 1stGenHomeNH assistance on a multifamily purchase.

What I look for on a house-hack tour

• Separate utilities. Individual meters for each unit keep your costs predictable.
• Current leases and rents. Ask for copies; they show the real income on day one.
• The big systems. Roof, heating, electrical and foundation matter more than finishes in an older two-family.
• Parking and layout. Off-street spaces and private entrances make units easier to rent.
• Which unit you'll live in. Sometimes the smaller unit makes more financial sense.

Becoming a landlord

You'll be responsible for repairs, rent collection and following New Hampshire landlord-tenant law and fair housing rules. Budget for vacancies and maintenance from the start, and line up an inspector who knows older Seacoast homes.

Thinking about a duplex anywhere on the Seacoast? Tell me about your plans and I'll send you what's out there.

Loan programs are subject to lender approval, FHA guidelines, occupancy requirements and county loan limits. Talk with a licensed lender about your situation.

Frequently asked questions

Can I use an FHA loan to buy a duplex?

Yes. FHA loans can finance owner-occupied duplexes, triplexes and fourplexes if you live in one unit as your primary residence, with as little as 3.5% down for qualifying borrowers.

Does rental income count toward qualifying?

Projected rent from the other units may help you qualify. For 3–4 unit properties, net rent after a vacancy factor must cover the full mortgage payment.