Question 2

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

An FHA 203b loan allows for the purchase of a four-unit property as long as the borrower intends to occupy one of the units as their primary residence.

A) a farm that has a tenant

A farm with a tenant does not qualify for an FHA 203b loan because this type of financing is intended for residential properties where the borrower will reside. The presence of a tenant indicates a business use rather than owner-occupied residential use.

B) a four-unit, owner-occupied building

This option is correct as the FHA 203b loan specifically allows for the purchase of multifamily properties, including buildings with up to four units, as long as the buyer occupies one of the units. This aligns perfectly with the FHA guidelines.

C) an apartment complex

An apartment complex typically consists of five or more units and is considered commercial property. Therefore, it does not meet the criteria for an FHA 203b loan, which is strictly for residential properties with up to four units.

D) vacant land

Vacant land cannot be purchased with an FHA 203b loan since the program is designed for residential properties that provide housing. Land alone does not fulfill the requirement of being an owner-occupied dwelling.

Conclusion

The option B, a four-unit, owner-occupied building, is definitively the correct answer as it meets the specific eligibility requirements set forth by the FHA 203b loan program. All other options fail to comply with these requirements, either due to their nature as commercial properties or because they do not provide an owner-occupied residential solution.