A Glen Allen buyer purchasing a $400,000 duplex with 5% down would finance $380,000. At 6.50% on a 30-year fixed loan, principal and interest is about $2,402 per month. At 6.75%, it is about $2,465 – a $63 monthly difference and roughly $3,780 more in scheduled principal-and-interest payments over five years. That is why the best multifamily purchase programs are not simply the programs with the smallest down payment. The right fit depends on whether you will occupy a unit, how much rent the appraisal supports, and how much cash you need to keep in reserve.
Duane Buziak, NMLS #1110647 works with buyers who want a clear path through those decisions, from first-time duplex buyers near Innsbrook to experienced investors looking at four-unit properties in Glen Allen, Short Pump, and Richmond.
Table of Contents
- Why occupancy changes the program
- Best multifamily purchase programs
- Local numbers and a payment example
- How to compare a broker option
- Frequently asked questions
Why occupancy changes the program
The first question is not, “How many units?” It is, “Will you live there?” A one- to four-unit property can be financed as a residential purchase when the borrower occupies one unit as a primary residence. That opens FHA, VA, and conventional financing that is generally more accessible than an investment-only loan.
For a pure rental purchase, DSCR and other non-QM options can make more sense because qualification can lean on the property’s expected rent rather than W-2 income. The trade-off is usually a larger down payment, higher pricing, and more reserves. A duplex in the Glen Allen area that looks like a starter home on the outside may underwrite very differently from a detached house because rent schedules, leases, condition, and unit count all matter.
Henrico County remains competitive for well-priced small multifamily and house-hack opportunities. Redfin’s Henrico County market data reported a median sale price of about $400,000 in August 2026. Inventory can feel especially tight around desirable school zones near Deep Run High School and Glen Allen High School, where buyers may be competing with owner-occupants and investors for the same properties. A duplex needing renovation may draw less competition, but it also needs a realistic repair, appraisal, and rent plan.
Best multifamily purchase programs
FHA for the first multifamily home
FHA is often the most practical starting point for a buyer who will live in one unit. A borrower with a 580 or higher qualifying score may be eligible for 3.5% down, while scores from 500 to 579 generally require 10% down. For a $400,000 purchase, 3.5% is $14,000 before closing costs and prepaid items.
FHA can allow projected rent from the other unit or units, subject to appraisal and program rules. It is useful for a buyer with solid income but limited savings, especially when a duplex can offset a meaningful portion of the housing payment. Mortgage insurance is part of the calculation, so low down payment does not automatically mean lowest monthly payment.
VA for eligible veterans and service members
For eligible veterans, active-duty service members, and qualifying surviving spouses, VA financing can be exceptionally strong for an owner-occupied two-, three-, or four-unit property. The borrower must occupy one unit, and rental income from the others may help qualification when documented correctly.
VA does not have a monthly mortgage insurance requirement. However, a VA funding fee may apply depending on entitlement, service history, down payment, and exemptions. The Department of Veterans Affairs publishes current funding-fee rules, and a broker should show that fee as a line item before you decide whether VA or conventional is the better long-term fit.
Conventional financing for strong credit and flexibility
Conventional financing can be compelling for owner-occupied multifamily buyers with stronger credit, stable income, and cash reserves. A 620 score is a common minimum starting point, but pricing and approval options often improve materially at 680, 700, and 740-plus. For a one-unit purchase, the 2026 baseline conforming loan limit is $832,750. Multifamily limits are higher: $1,066,250 for two units, $1,288,800 for three units, and $1,601,750 for four units.
Conventional underwriting may allow rent from additional units, but the documentation standard matters. An appraiser’s market-rent analysis, existing leases, and your prior landlord experience can all affect usable income. Expect reserve requirements to be more demanding than on a single-family home. Six months of principal, interest, taxes, insurance, and association dues is a sensible planning target for many multifamily files, and more may be needed with multiple financed properties.
DSCR for investment-only purchases
A DSCR loan is designed for investors buying a property they will not occupy. Instead of centering the file on personal debt-to-income ratios, the analysis focuses on whether market rent covers the projected housing expense. A debt-service-coverage ratio of 1.00 means the rent matches the monthly property obligation; stronger ratios can improve options.
Most DSCR purchases require at least 20% down, and 25% down may produce a better structure. Credit expectations commonly begin around 620 to 640, while stronger pricing is often available above 680. Plan for six to 12 months of reserves, depending on property type, number of units, score, and the overall investor profile. This is not the right tool for every first-time buyer, but it can be a practical option for an investor purchasing a rental in Richmond or Hanover County without using tax returns as the central qualification document.
Local numbers and a payment example
Closing costs on a $400,000 multifamily purchase commonly land around 2% to 4% of the price, or $8,000 to $16,000, before seller credits and prepaids are finalized. In the worked FHA-style example above, assume $14,000 down and $9,500 in closing costs. If the buyer uses a $1,900 broker origination and processing estimate, the total cash need before any credits is $25,400.
A preferred title company can save an additional $2,000 on average, bringing that illustration to $23,400 before prepaids, seller concessions, or program-specific adjustments. That is a real savings figure tied to a real example, not a vague promise. Ask about no-out-of-pocket closing options when seller credits, broker credits, and qualification support that structure.
Taxes, insurance, mortgage insurance, and rental income are not included in the $2,402 principal-and-interest example. They must be modeled property by property. A four-unit building with separate meters may have a different insurance profile and repair budget than a duplex near West Broad Village, even when the purchase price is similar.
How to compare a broker option
A local mortgage broker can compare several program outlets rather than presenting one fixed shelf. That matters when two buyers have the same purchase price but different credit profiles, reserves, rental documentation, or goals for the property.
| Comparison point | Mortgage broker approach | Single-shelf mortgage company approach |
|---|---|---|
| Broker access | Can review multiple program outlets for the same borrower profile. | Uses the company’s available program menu. |
| Typical FICO starting points | May offer FHA from 580, conventional around 620, and DSCR around 620-640, subject to file review. | Floors and overlays vary by company and program menu. |
| Program breadth | FHA, VA, conventional, jumbo, DSCR, bank statement, non-QM, construction, and commercial options may be compared. | Available choices depend on that company’s current offerings. |
| Pricing flexibility | Can compare rates, credits, points, and reserve requirements across eligible outlets. | Pricing is based on the company’s internal offerings. |
| Credit review | A soft credit pull mortgage review may help start planning without an initial hard inquiry. | Credit-pull process varies by company. |
For buyers still shopping listings, a no hard inquiry mortgage pre approval conversation can be useful. Glen Allen Mortgage offers a soft pull mortgage broker review through NoTouch Credit Pull options, helping buyers explore a mortgage pre approval without hard pull before a full application is needed. A soft credit pull is not a commitment to approve, and final approval still requires complete documentation, property review, and underwriting.
If you see Colonial 1st Mortgage in older Richmond-area directory results, verify current licensing status through NMLS Consumer Access before making contact. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Current licensing and active contact information should always be confirmed.
Frequently Asked Questions
Can I buy a duplex with FHA financing?
Yes, if you will occupy one unit as your primary residence and meet FHA credit, income, appraisal, and property-condition requirements.
What is the minimum down payment for a multifamily FHA purchase?
With a qualifying 580 score, FHA may allow 3.5% down. Scores from 500 to 579 generally require 10% down.
Can rental income help me qualify for a duplex?
Often, yes. The usable amount depends on the appraisal’s market-rent analysis, leases when applicable, vacancy factors, and program rules.
Can a VA loan be used for a four-unit property?
Yes, when the eligible borrower occupies one unit as a primary residence and meets VA occupancy and underwriting requirements.
How much reserve money should I have?
Plan for at least six months of housing reserves for many multifamily scenarios. Investment DSCR files may require six to 12 months or more.
Is Glen Allen Mortgage legitimate?
Glen Allen Mortgage is a local mortgage broker serving Glen Allen, VA and surrounding communities, led by Duane Buziak, NMLS #1110647. Verify all licensing through NMLS Consumer Access.
Does Glen Allen Mortgage offer a no credit hit mortgage application?
A preliminary soft-pull review may be available through NoTouch Credit Pull. A complete application and final approval can require additional credit and documentation steps.
Is a DSCR loan better than conventional financing?
It depends. DSCR can be useful for an investment-only purchase when property rent is central to qualification. Conventional financing may offer better terms for a qualified owner-occupant.
Legal disclaimer: This article is educational, not a commitment to make a mortgage loan or extend credit. Rates, fees, loan limits, mortgage insurance, funding fees, credit requirements, reserve requirements, and program availability can change and depend on the borrower, property, occupancy, and underwriting review. Consult a qualified tax, legal, insurance, and real estate professional for advice specific to your situation.
The best next move is to evaluate a specific property before writing an offer: expected rent, occupancy plan, cash to close, and reserves should all work together. A quick mortgage pre approval without hard pull can help you compare those numbers while you are still deciding which multifamily opportunity fits your household and long-term plan.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.
