FHA Loan
A government-insured mortgage allowing 3.5% down for primary residences. Not available for investment property — DSCR is the investor equivalent.
Why it matters on a DSCR loan
FHA comes up for investors mostly as a house-hacking entry point — buying a 2-4 unit property as a primary residence with low down payment, living in one unit, and renting the others. It matters at DSCR time because FHA can never finance a pure rental purchase, so investors who outgrow owner-occupied strategies transition to DSCR for their non-owner-occupied acquisitions. Trying to use FHA on a property you don't actually occupy is occupancy fraud, and underwriters check.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).