Two-to-Four unit multi-family homes are selling like hotcakes in Chicago and nearby suburbs. The minute a two-to-unit multi-family home hits the MLS, you will see dozens of buyers and a bidding war, especially in the better sections of Chicago and the suburbs. Two-to-four unit multi-family homes sell at a premium because if the owner manages right, they can live rent free in one of the units and rent out the other units in the building which pays for the mortgage. HUD, the parent of FHA, allows two-to-four unit multi-family homes with a 3.5% down payment FHA loan for owner-owner occupant primary homebuyers. With commercial financing available including construction loans, real estate investors and developers should think about buying land to build a two-to-four unit multi-family building for less than an existing building. I will do more research in buying lots and building a four unit multi-family building.

Is there a one-time construction mortgage loan on two-to-four unit mult-family new construction. If so, what are the requirements on qualifying for a one-time construction loan on two-to-four unit multi-family primary homes.