Financing
Conventional, FHA and VA loans can finance owner-occupied 2–4 unit homes. Lenders may count part of the expected rent toward your income, using a lease or an appraiser’s rent estimate.
Underwrite it like an investment
- Verify each unit’s legal status with the town (certificate of occupancy, number of legal units).
- Review existing leases, security deposits and rent history.
- Check separate utilities and meters.
- Budget for vacancy, repairs and turnover.
NJ landlord rules to know
Security deposits are capped at 1.5 times a month’s rent, many towns require rental registration and inspections, pre-1978 rentals are subject to lead-safe inspection rules, and some towns have rent control ordinances. Learn the rules before you close.
Where to look
Use the town explorer to compare homeownership rates and rents. Towns with lower ownership rates and older housing stock often have more multi-family homes.
Questions, answered
Can I buy a two-family in NJ with 3.5% down?
With an FHA loan, owner-occupants can buy 2–4 unit homes with the program’s minimum down payment if they qualify.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.