What is a duplex?

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