A duplex is a two-family structure. There is some misconception that a duplex is just for investors, but this is simply not true. With the rising rates, some smart home buyers are looking at a duplex as their housing option. This does not require any special financing. HUD allows for two-family homes with FHA financing.
A duplex is a solid investment. It can produce strong value growth and high rental yields for a much lower price than a detached house. Also, it can help you build equity faster than saving money while renting.
Some of the most popular benefits
- Have rent cover a significant portion of the mortgage payment
- Maintain a close eye on your investment
- Allow an aging parent to live in the other unit to provide close care for family
- Possibly use the current rent as income to qualify for the duplex purchase
There is a lot of benefit to purchasing a multi-family home. Discuss all these options with a senior loan officer to weigh out the benefits.
Written by Patricia Eubanks, Vice President