Can You Convert a Single-Family Home to a Duplex with a 203k Loan?

203k Loans for Single-Family Home Conversion

You might already know that you can use an FHA 203k loan to purchase a duplex, triplex, or quadplex. However, you might not know that you can purchase a single-family home with the 203k loan and use your repair and renovation funds in order to convert the home into a multi-unit property. Since you can live in one unit and rent the rest out to tenants, this can be an incredible way to increase your income (and can even help you pay your mortgage.)

In order to successfully complete a conversion and rent out the remaining units, you’ll need to make sure that the area in which you live is properly zoned for 2-4 unit multifamily properties. If not, you’ll likely need to get a special permit.

203k Loans for Multifamily Unit Consolidation

While probably less common than converting a single-family home to a duplex, 203k loans can also be used to downsize multifamily properties. For example, a borrower could convert an existing duplex into a single-family home, or a quadplex into a triplex or a duplex. Borrowers may want to do this for a variety of reasons, including the desire to have more living space for themselves. They may also want fewer units if they don’t want to take on as much (or any) responsibility as a landlord.


If you’d like to learn more about FHA 203k loans, simply fill out the form below and a friendly FHA home loan specialist will get in touch!