FHA loan
FHA can finance a house of one to four units when you live in one of them as your main residence. FHA loans accept smaller down payments and lower credit scores than most conventional loans.
FHA loans in New Jersey
Passaic County, New Jersey
Two- to four-unit homes in Passaic County, NJ
For Passaic County buyers who want to live in one unit of a two-, three- or four-unit house: the loans that allow it, what to check before an offer and on an older building, and what changes if nobody on the loan will live there. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
What is your plan?
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Passaic County housing
Two-family and three-family houses, many of them older
Passaic County counts about 521,000 residents and about 185,800 homes in the American Community Survey, the Census Bureau’s estimates for 2020 to 2024. Owners and renters are close to even, an estimated 53.1 and 46.9 percent, and the estimated median value of owner-occupied homes is about $459,500.
About 31 percent of homes are in buildings of two to four units: an estimated 20.8 percent, about 38,700 homes, in two-unit buildings, and 9.9 percent, about 18,500, in buildings of three or four.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Passaic County, and we lend across New Jersey.
The homes
- One-family houses: an estimated 41.6 percent of homes are detached one-family houses
- Before 1940: an estimated 28.8 percent were built in 1939 or earlier
- Before 1960: about 57 percent were built before 1960
- Mortgages: of about 95,000 owner-occupied homes, an estimated 65.4 percent have a mortgage
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Owner-occupied
Living in one unit and renting the others
Two government-backed programs can buy a house of up to four units when you live in one of them.
VA loan
A VA loan can buy a home of up to four units when you live in one. It is for eligible veterans, service members, Reserve and National Guard members and certain surviving spouses, with no monthly mortgage insurance.
VA loansAsk first
A multi-unit home changes what other programs ask for. A loan officer can tell you what it changes for the programs you are looking at, before you make an offer.
Home purchase loans
Before you make an offer
What to check on a multi-unit house
A two- or three-family house built decades ago brings a few extra questions. Settle them before you sign, while you can still change your mind.
With an FHA loan, the appraiser checks the building against HUD’s safety and soundness standards, and repairs may be required before closing. When the house needs work, ask about a renovation loan, one mortgage for the home and the work it needs.
Your list
- Your plan: to live in one of the units as your main residence
- The loan limit: FHA sets one for each county, and your loan must fit the limit for the county where the home is; your loan officer gives you the current figure
- The tax bill: for the building itself, because taxes are part of the monthly payment
- Insurance: a quote for the building, with flood insurance if it needs it
- The condition: what the appraiser will check, and whether repairs may be required before closing
Rentals
If nobody on the loan will live there
A two- to four-unit house that nobody on the loan will live in is a rental, and FHA and VA loans do not apply. Two other routes do.
On your own income. A standard conventional mortgage can buy or refinance a rental of one to four units, underwritten on your income, debts and credit. See investment property loans.
On the rent. A DSCR loan finances the property on its rent, and the rent of every unit counts toward the ratio. It is a business-purpose loan, and nobody on the loan may live in any of the units. See DSCR loans in New Jersey.
Questions
Questions from Passaic County buyers
Do you lend in Passaic County?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in Passaic County?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County. Call 732-686-9999 to talk with a licensed loan officer.
Can I buy a three-family house and live in one unit?
Yes. An FHA loan can finance a house of one to four units when you live in one of them as your main residence, and a VA loan can buy a home of up to four units when you live in one.
Can I use an FHA loan for a house I will rent out entirely?
No. The home must be your main residence. A home you will rent out, or use for part of the year, is not eligible; see investment property loans.
Does FHA mortgage insurance ever end?
The upfront premium is paid once, usually added to the loan. The annual premium ends after a set number of years with a larger down payment, and lasts for the life of the loan with a smaller one.
Can a relative help with the down payment?
On an FHA loan, a gift from a relative or another allowed donor can cover the down payment. You will need a gift letter and a record of the money moving.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
Business purpose investor loans are for investment property only.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.