Can You Buy an Apartment Building With an FHA or VA Loan?
You can use an FHA or VA home loan to buy a building with up to four units, as long as you live in one of them. You cannot use either to buy an apartment complex of 5 or more units: HUD limits FHA's single-family programs to owner-occupied one- to four-unit properties, and the VA says its purchase loan can buy a home of up to 4 units that you will live in. For 5 or more units, the FHA route is HUD's multifamily mortgage insurance, mainly Section 223(f) for existing buildings and Section 221(d)(4) for new construction or substantial rehabilitation, which work like commercial loans.
This guide sets out the rules from HUD and VA documents, the 2026 FHA loan limits for two- to four-unit homes, and the financing options at each building size.
What do FHA rules say about apartment buildings?
HUD's Single Family Housing Policy Handbook is direct: "FHA's Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal Residences" (HUD Handbook 4000.1). Three rules follow from that:
- Unit count. One to four units. A fourplex qualifies; a fiveplex does not.
- Occupancy. At least one borrower must occupy the property within 60 days of signing the security instrument and intend to stay for at least one year.
- No investment properties. The handbook says investment properties are not eligible for FHA insurance, with narrow exceptions for HUD-approved nonprofits and government agencies. FHA also generally will not insure more than one principal residence per borrower.
The same principal-residence definition appears in the federal regulation on maximum FHA mortgage amounts: the dwelling where the borrower maintains a permanent place of abode and typically spends the majority of the calendar year (24 CFR 203.18).
What about VA loans?
The Department of Veterans Affairs lists the uses of a VA-backed purchase loan, starting with "Buy a single-family home, up to 4 units," and requires that "you will live in the home you're buying with the loan" (VA, Purchase Loan). The underlying statute ties several VA loan types to the veteran occupying the dwelling as a home (38 U.S.C. 3710).
So a veteran can buy a fourplex, live in one unit and rent the other three. A veteran cannot use a VA home loan to buy a 12-unit building as an investment.
What are the FHA loan limits for 2 to 4 units in 2026?
FHA sets a maximum loan by county and by number of units. For 2026 HUD announced these national ranges, effective for FHA case numbers assigned on or after January 1, 2026 (HUD, December 11, 2025):
| Property | Low-cost area floor | High-cost area ceiling |
|---|---|---|
| One unit | $541,287 | $1,249,125 |
| Two units | $693,050 | $1,599,375 |
| Three units | $837,700 | $1,933,200 |
| Four units | $1,041,125 | $2,402,625 |
Your county's limit falls somewhere in that range; HUD's FHA mortgage limits lookup gives the exact figure. Note what the table is not: it is not a limit for apartment complexes. HUD's multifamily programs use different loan sizing, set by tests on value or cost, debt coverage and statutory limits per unit that HUD revises by notice each year (HUD MAP Guide).
What is the FHA option for 5 or more units?
HUD's multifamily programs insure loans on rental properties of 5 or more units. The MAP Guide says each FHA-insured multifamily property "must consist of five or more dwelling units," and for new construction and substantial rehabilitation, each unit needs its own full kitchen and bath (HUD MAP Guide, Sections 3.1.30 and 3.2.1). These loans are underwritten by HUD-approved MAP lenders, sized on the property's income, value or cost, and do not depend on anyone living in the building.
Two programs matter most for apartment buyers:
- Section 223(f): purchase or refinance of existing apartments. Maximum term of 35 years (or 75% of remaining economic life). We cover its terms, the 5-year prepayment rule and whether a first-time sponsor can get one in HUD 223(f) loans for apartment syndications.
- Section 221(d)(4): new construction or substantial rehabilitation. Maximum term of 40 years (or 75% of remaining economic life). For market-rate projects, the loan is capped at 85% of replacement cost and sized so that debt service uses no more than 85% of net operating income, a debt coverage of about 1.176x (HUD MAP Guide, Sections 3.1.6 and 3.3).
Both come with HUD's own processing, reports and requirements, and 223(f) loans generally cannot be prepaid for 5 years, so they suit long holds more than a quick value-add plan.
Which loan fits which building size?
| Building | FHA single-family | VA purchase loan | HUD multifamily | Conventional or agency |
|---|---|---|---|---|
| 1 unit | Yes, if you live there | Yes, if you live there | No | Residential mortgage |
| 2 to 4 units | Yes, if you live in one unit | Yes, if you live in one unit | No | Residential mortgage for 1 to 4 units |
| 5 to 50 units | No | No | 223(f) or 221(d)(4), through a MAP lender | Agency small loans, bank loans, investor DSCR loans for small buildings |
| 50+ units | No | No | 223(f) or 221(d)(4) | Agency, bank, life company or bridge loans |
Sources: HUD Handbook 4000.1, VA, HUD MAP Guide, Freddie Mac small-loan term sheet (5 to 50 units, generally $2 million to $10 million).
The jump at 5 units is why lenders, appraisers and many investors treat 5+ unit buildings as commercial real estate even though people live in them. See are apartment buildings commercial or residential? for how the line moves between lending, tax and zoning.
A worked comparison: house hack vs. syndication share
Here is how the two paths differ for one person with $80,000 to put in. All numbers are hypothetical, for illustration only.
| Topic | Fourplex with an FHA loan | Investor in a 60-unit syndication |
|---|---|---|
| Price | $800,000 | $7,500,000 building |
| Your money | Down payment and closing costs from your $80,000 | $80,000 of the equity raise |
| Loan | FHA, in your name, as your home | Agency or bank loan in the deal company's name |
| Who signs the loan | You | The sponsor or key principal signs carve-out guaranties |
| Your work | You are the landlord and live on site | Passive; the sponsor runs the deal |
| Rule that matters | Live there 1 year, 1 to 4 units | Usually accredited investors only, under Regulation D |
| If rents fall 15% | You cover any shortfall on your mortgage | Distributions fall or stop; you can lose your $80,000, but you do not owe the lender |
Neither is a safer bet in general. The fourplex gives you control and personal liability; the syndication gives you a small share of a larger building and no control. For the full menu of routes, see how to invest in apartment buildings.
How DoorRaise fits in
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FAQ
Can I buy an apartment complex with an FHA loan?
Not with an FHA home loan. FHA single-family loans are for owner-occupied properties of one to four units. A complex of 5 or more units needs commercial or multifamily financing, which can include HUD's multifamily programs such as Section 223(f).
Can I buy an apartment building with a VA loan?
Only a building of up to 4 units that you will live in. The VA lists buying "a single-family home, up to 4 units" as a use of its purchase loan, with the requirement that you live in the home.
What are the FHA multifamily loan requirements?
For HUD's multifamily programs, the property must have at least 5 dwelling units (new construction and substantial rehab also need a full kitchen and bath in each unit), and the loan is made through a HUD-approved MAP lender. Section 223(f) is for existing properties and 221(d)(4) for new construction or substantial rehab; each has its own leverage, coverage and term rules.
What are the FHA multifamily loan limits?
For 2 to 4 unit homes, 2026 limits run from $693,050 to $1,599,375 for two units and from $1,041,125 to $2,402,625 for four units, by county. HUD's 5+ unit programs have no single dollar cap; loans are sized by value or cost, debt coverage and per-unit statutory limits.
Can I live in one unit of a 6-unit building and use FHA?
No. FHA's single-family programs stop at four units, whether or not you live there.
Sources
- HUD, Single Family Housing Policy Handbook 4000.1
- 24 CFR 203.18, Maximum mortgage amounts (Cornell LII)
- U.S. Department of Veterans Affairs, VA-backed purchase loan
- 38 U.S.C. 3710, Purchase or construction of homes (Cornell LII)
- HUD, "HUD's Federal Housing Administration Announces 2026 Loan Limits" (December 11, 2025)
- HUD, Multifamily Accelerated Processing (MAP) Guide, March 2021 revision
- Freddie Mac Multifamily, Optigo Conventional Small term sheet (4/26)
This article is general information, not legal, tax or investment advice. Loan rules change; confirm current terms with an FHA-approved, VA-approved or HUD MAP lender. DoorRaise is not a lender, law firm, broker-dealer, investment adviser or funding portal.