Single Family Homes in Relation to 203(k) Loans

203(k) Loans and Single Family Homes

A single-family home is nothing more nor less than an unattached single structure designed as a dwelling. In terms of FHA requirements, a single-family home is an owner-occupied property that is used as the owner’s primary residence within that state. FHA mortgages are intended for consumers, not investors or landlords, which is why the organization requires that the borrower who takes out the loan actually live at the property. This helps prevent borrowers from using FHA loans to purchase vacation homes or investment properties they will not use as their primary residences. FHA loans require at least one of the borrowers named on the loan to reside at the property when the loan closes.

However, it is important to realize that FHA loans, including 203(k) loans, are actually available for properties between 1 and 4 units. Therefore, a borrower can purchase a duplex, triplex, or quadplex, live in one unit, and rent out the rest.


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!