Question 55

A four-unit, owner-occupied building can be purchased with an FHA 203b loan.

The FHA 203b loan program allows for the purchase of multi-family properties, specifically those that the borrower intends to occupy. This includes buildings with up to four units, making option B the correct choice.

A) a farm that has a tenant

A farm, especially one that is tenant-occupied, does not qualify under the FHA 203b loan guidelines, which focus on residential properties. Farms are typically considered agricultural investments rather than eligible residential housing.

B) a four-unit, owner-occupied building

This option is correct because the FHA 203b loan is designed for residential properties that can include multi-family buildings with up to four units, provided the owner occupies one of the units. This aligns perfectly with the FHA program's objectives.

C) an apartment complex

While apartment complexes are residential, the FHA 203b loan is not intended for properties with more than four units. Therefore, purchasing an entire apartment complex would exceed the eligibility criteria for this specific loan type.

D) vacant land

Vacant land does not qualify for FHA 203b loans, as the program is focused on financing residential properties that provide housing. Land alone, without a residential structure, cannot be financed through this loan type.

Conclusion

Option B is definitively correct as it aligns with the FHA 203b loan's purpose of facilitating the purchase of owner-occupied residential properties, specifically allowing multi-family buildings with up to four units. All other options fail to meet the eligibility criteria set forth by the FHA, either because they involve ineligible property types or exceed the limits of the program.