Buy a Duplex, Triplex or Fourplex With 5% Down (2026)

Quick answer (updated October 2026): Yes, you can buy a fourplex with 5 percent down. Fannie Mae and Freddie Mac allow up to 95% LTV on owner-occupied 2-4 unit homes, as long as you live in one unit. Visa holders are eligible on conventional loans on the same terms as citizens. Rent from the other units can count toward qualifying, generally at 75% of gross rent.

For years, the rule of thumb was that a duplex or fourplex meant 15% to 25% down on a conventional loan. That changed. Fannie Mae and Freddie Mac now allow 5% down on owner-occupied 2-4 unit properties, which opens up house hacking to buyers who don't have six figures in the bank.

For South Asian families, the appeal is obvious. Live in one unit, rent the others, maybe put your parents in one later. This guide covers the 2026 loan limits, how rental income is counted, worked payment examples, and what H-1B and green card buyers should know.

How 2-4 unit 5% down conventional loans work

The key requirement is owner occupancy. You must live in one of the units as your primary residence. This isn't an investment property loan, which would need a much larger down payment.

As of October 2026:

• Fannie Mae: Up to 95% LTV on 2-4 unit principal residences through Desktop Underwriter (Eligibility Matrix, Aug 5, 2026).

• Freddie Mac: Up to 95% LTV on 2-4 unit primary residences.

• High-balance loans: Lower. Fannie caps high-balance 2-unit loans at 85% LTV and 3-4 unit at 75%. Freddie's super conforming limits are 85% and 80%.

• Mortgage insurance: Required under 20% down, and removable later under conventional rules. See how to remove PMI from a conventional loan.

2026 conforming loan limits by number of units

Multi-unit loan limits are higher than single-family limits. That matters, because a 5% down fourplex loan can stay conforming at prices that would be jumbo for a single-family home.

Units	2026 baseline limit (most counties)
1	$832,750
2	$1,066,250
3	$1,288,800
4	$1,601,750

High-cost counties have higher limits. Above the baseline, you're in high-balance territory, where the 95% option shrinks to 85% or 75% (Fannie). Source: FHFA 2026 conforming loan limits.

Multifamily owner occupied: how rental income helps you qualify

Under Fannie Mae Selling Guide B3-3.1-08, lenders generally count 75% of the gross monthly rent from the units you're not living in. The 25% haircut accounts for vacancy and maintenance. The full mortgage payment (PITIA) counts as your housing expense.

Documentation usually includes:

• Form 1025 (Small Residential Income Property Appraisal), which includes market rent for each unit

• Current leases if tenants are staying, plus proof the rent is being paid

• Schedule E from your tax return if you already own rentals

Your landlord history can affect how much rental income counts. First-time landlords sometimes face limits. Ask your lender exactly how they apply this before you write an offer.

Worked examples at today's average rate

All payments use the Freddie Mac weekly average of 7.40% for October 15, 2026 (illustration only, not a quote or offer). Principal and interest only. Taxes, insurance and PMI are extra, and on multi-unit properties insurance can be meaningful.

Example 1: House hacking a duplex in Irving

Illustration only. Siddharth, an L-1 engineer, buys a $600,000 duplex in Irving, Texas. He lives in one side.

Item	Amount
Purchase price	$600,000
5% down	$30,000
Loan amount	$570,000
Monthly P&I	$3,947
Market rent for other unit (Form 1025)	$2,400
Rental income used for qualifying (75%)	$1,800

The $1,800 is added to his qualifying income, and the full payment counts as his housing expense.

Example 2: A fourplex in a baseline county

Illustration only. Fatima and Imran, green card holders, buy a $900,000 fourplex in a baseline county.

Item	Amount
Purchase price	$900,000
5% down	$45,000
Loan amount	$855,000
Conforming?	Yes. Under the $1,601,750 four-unit limit
Monthly P&I	$5,920
Market rent, 3 units at $1,900	$5,700
Rental income used for qualifying (75%)	$4,275

Note that $855,000 would be jumbo for a single-family home. On a fourplex, it's conforming.

Talk to a loan officer who's seen this before: Multi-unit files have more moving parts: rent schedules, reserves, insurance and landlord history. Send us a listing and we'll tell you in minutes whether it pencils at 5% down. Start at /contact.

Visa holders: conventional yes, FHA no

Fannie Mae's Selling Guide (B2-2-02) lets non-permanent residents borrow on the same terms as U.S. citizens. Freddie Mac's guide takes the same approach. An H-1B, L-1, O-1 or EAD holder can use the 95% 2-4 unit option, subject to lender overlays.

FHA is different. Under HUD Mortgagee Letter 2025-09, H-1B, L-1, O-1, TN, OPT and EAD-only holders can't use FHA for case numbers on or after May 25, 2025. Green card holders and citizens still can, and FHA's low down payment on multi-unit homes may be worth comparing for them. For visa holders, see the best FHA alternatives in 2026.

Some lenders add overlays on top: higher credit score minimums for 2-4 units, larger reserve requirements, or restrictions for non-permanent residents on multi-unit loans. That's where a broker with many lenders helps.

Checklist before you buy a 2-4 unit home

Check	Why it matters
Will you move in within the lender's timeframe?	Owner occupancy is the basis for 5% down
Is it a legal 2-4 unit property?	Unpermitted units may not count for rent or value
Are current leases transferable?	Existing tenants affect rent documentation
Reserves available?	Multi-unit files often need more reserves than single-family
Insurance quote?	Landlord coverage on multiple units adds to PITIA
Price above baseline limit?	High-balance rules cut maximum LTV
Your landlord experience	Can affect how much rent counts

Family use and accessory units

Planning to house parents in one unit? That's still your primary residence if you live in another unit, though rent from family needs to be real and documented to count. For a single-family home with an accessory unit rather than a true 2-4 unit property, different rules apply. See boarder income and accessory unit mortgages.

If you'd rather buy a pure rental without living there, read buying rental property on an H-1B visa. Down payment requirements on investment properties are much higher.

What the rules actually say

• Fannie Mae Eligibility Matrix (Aug 5, 2026): Up to 95% LTV/CLTV for 2-4 unit principal residence purchases via DU; high-balance capped at 85% (2-unit) and 75% (3-4 unit). Freddie Mac allows 95% for 2-4 unit primaries (super conforming 85%/80%).

• Fannie Mae Selling Guide B3-3.1-08: Rental income from a 2-4 unit principal residence generally calculated at 75% of gross monthly rent, documented with Form 1025 and/or leases.

• FHFA 2026 conforming loan limits: Baseline $832,750 (1 unit), $1,066,250 (2), $1,288,800 (3), $1,601,750 (4).

• HUD Mortgagee Letter 2025-09: FHA not available to non-permanent residents for case numbers on or after May 25, 2025, as of October 2026.

Frequently Asked Questions

Q: Can I really buy a fourplex with 5 percent down?
A: Yes, if you'll live in one unit as your primary residence and the loan stays within baseline conforming limits. Fannie Mae and Freddie Mac both allow 95% LTV on owner-occupied 2-4 unit homes. Lenders may add their own credit or reserve overlays.

Q: Can H-1B holders buy a duplex with 5% down?
A: Yes, on a conventional loan. Fannie Mae treats non-permanent residents the same as citizens. FHA isn't available to H-1B holders as of October 2026. Some lenders add multi-unit or visa overlays, so compare more than one.

Q: How much rental income can I use to qualify for a 2-4 unit home?
A: Generally 75% of the gross monthly rent from the units you won't occupy, based on leases or the appraiser's market rent on Form 1025. Your landlord history can affect how much is allowed.

Q: Do I have to live in the fourplex?
A: Yes. The 5% down option is for owner-occupied homes. You must intend to live in one unit as your primary residence. Misrepresenting occupancy is mortgage fraud.

Q: What's the loan limit for a fourplex in 2026?
A: The 2026 baseline conforming limit for a four-unit property is $1,601,750, with higher limits in high-cost counties. Loans above baseline are high-balance, where Fannie Mae's maximum LTV drops to 75% for 3-4 units.

Run a two-minute pre-approval check on a 2-4 unit home

House hacking works when the numbers work. We'll do a two-minute pre-approval check on your duplex, triplex or fourplex: loan limit for your county, rent we can likely count, reserves and an estimated payment, then match you with lenders among our 150+ wholesale partners that do 5% down multi-unit loans for H-1B, L-1, EAD and green card buyers. Have the listing, any rent roll and your income documents ready. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.