Financing 2–4 Family Purchases in Port Richmond & Beyond

Thinking about buying a small multifamily in Port Richmond or elsewhere on Staten Island so your tenants help cover the mortgage? You’re not alone. Two to four unit homes let you live in one unit, rent the others, and tap loan programs built for 1–4 unit properties. In this guide, you’ll see your main financing options, how lenders treat rental income, and the local rules that can affect your purchase and cash flow. Let’s dive in.

Why 2-4 family homes on Staten Island

Two to four family properties are single buildings with multiple legal dwelling units under one tax lot. Many buyers use them for owner-occupied “house-hacks,” where you live in one unit and rent the others. Mortgage programs from FHA, VA, Fannie Mae, and New York State treat 1–4 unit homes as a specific category, which opens doors for financing you may not get with larger buildings. Programs like SONYMA also explicitly allow 2–4 family purchases for eligible New Yorkers.

Beyond access to programs, the rental income potential can offset monthly costs. Just remember that lenders apply vacancy or expense factors when they count rent, so your preapproval should reflect real underwriting for a 2–4 unit home.

Your financing options

FHA: low down, clear occupancy rules

FHA’s standard 203(b) program insures purchase loans on owner-occupied 1–4 unit homes. You must live in one unit as your primary residence. The minimum down payment is generally 3.5%, and FHA allows the use of rental income under program rules, with specific tests for some 3–4 unit purchases. Expect upfront and annual mortgage insurance. Review FHA basics and occupancy requirements in the FHA 203(b) overview.

Conventional: 5 percent down now possible

Fannie Mae’s late-2023 update made a big difference for owner-occupants buying 2–4 unit homes. Many buyers can qualify with as little as 5% down when the loan receives automated approval, which has broadened access beyond FHA for some profiles. See industry coverage of this change in Mortgage News Daily’s summary. Conventional loans often require six months of reserves for 2–4 unit principal residences, which is cash you must have after closing. Review reserve rules in the Fannie Mae Selling Guide.

Note: HomeReady and other low down payment conventional options may be available, subject to income limits and contribution rules. Lender overlays vary, so confirm details in writing.

VA: strong option for eligible veterans

VA purchase loans can be used for up to four units when you live in one of them. Many VA buyers can put 0% down depending on entitlement and county limits, and VA does not require monthly PMI. Learn more in the VA purchase loan guide.

SONYMA: New York programs for 2–4 units

State of New York Mortgage Agency programs allow financing of 2–4 family homes under program rules, with occupancy and eligibility requirements. These can pair lower down payments with fixed-rate security for income-qualified buyers. Explore current offerings at SONYMA.

How lenders count rental income

Lenders often let you use projected rental income from the other units to qualify. They typically rely on the appraiser’s market rent estimate or signed leases, then subtract a vacancy or expense factor before counting the income. FHA, conventional, and special programs handle this differently, and some 3–4 unit purchases have extra self-sufficiency tests. For a deeper look at rental income treatment, review this HUD reference.

Cash to close: what to budget

• Down payment: FHA about 3.5% for eligible borrowers. Conventional can be 5% for many owner-occupant 2–4 unit purchases with automated approval. VA can be 0% for eligible veterans. SONYMA offers low down payment options for qualifying buyers.
• Closing costs: Plan for roughly 2–4% of the purchase price, depending on lender, taxes, and escrows.
• Reserves: Conventional loans often require about six months of PITIA for 2–4 unit owner-occupied transactions, separate from your down payment and closing costs. See Fannie Mae’s reserve guidance.
• Insurance: Landlord insurance typically costs more than standard homeowners insurance. If the home is in a high-risk flood zone, the lender will require flood insurance. Check a property’s flood zone with the FEMA Flood Map Service Center.
• Repairs and contingencies: Older 2–4 families may need work to meet lender standards and your rental goals, so budget a cushion.

Local rules that can impact financing

HPD registration for 3–4 families

If you buy a three or four family home in NYC, you generally must complete annual property registration with HPD. Missing registration can lead to fines and administrative headaches. Learn how to register on the HPD property registration page.

Certificate of Occupancy and open violations

Your loan and title company will expect the legal use to match reality. If the building was altered without permits, or the unit count does not match the Certificate of Occupancy, it can delay or block financing. Ask your agent and attorney to run DOB and HPD checks early so surprises do not derail your closing.

Rent regulation and tenant protections

Most 2–4 family homes are not rent stabilized, since stabilization typically covers buildings with six or more units. However, New York has expanded tenant protections in recent years, including Good Cause Eviction. Before you set lease policies, review official guidance such as the city’s rent stabilization overview and consult your attorney on what applies to your building.

Flood risk on Staten Island’s North Shore

Parts of Port Richmond and nearby neighborhoods sit near the harbor. If a property is in a Special Flood Hazard Area, lenders require flood insurance, which affects your monthly costs and long-term budget. Verify flood risk early using the FEMA Flood Map Service Center and request insurance quotes during your contingency period.

Due diligence and offer prep checklist

• Get a true 2–4 unit mortgage preapproval, not just a prequalification. Ask whether the lender offers the newer conventional 5% down options and what overlays they apply. See industry context in this DU update summary.
• Confirm reserve requirements in writing, including any additional reserves if you own other financed properties. Review Fannie Mae’s reserve rules.
• Gather leases, rent rolls, and proof of rent receipts if tenants occupy units. Your appraiser will provide market rent estimates.
• Order a thorough appraisal and a home inspection, and be ready to address any lender-required repairs.
• Pull the Certificate of Occupancy and check DOB/HPD records for open violations or illegal conversions.
• Check the flood zone and request flood insurance quotes early using FEMA’s map.
• If you plan to live in one unit, explore potential STAR property tax benefits and other NYC exemptions with your attorney or tax advisor after closing.

Work with a team that knows small multifamily

Buying a 2–4 family home is part financing strategy, part local compliance, and part rental planning. You deserve guidance that blends neighborhood knowledge with up-to-the-minute lending rules. If you are weighing Port Richmond or another Staten Island neighborhood, connect with a boutique team that treats your purchase like an investment from day one. Reach out to Revived Residential to talk through loan options, rental assumptions, and a clean path to closing.

FAQs

What is the minimum down payment to buy a 2–4 family in Staten Island?

• FHA often allows about 3.5% down for owner-occupants, conventional can be 5% with automated approval for many 2–4 unit purchases, VA can be 0% for eligible veterans, and SONYMA offers low down payment options for qualifying buyers.

Can rental income from the other units help me qualify for a loan on a 2–4 family?

• Often yes, but lenders usually use appraiser market rent or leases and then subtract a vacancy or expense factor, with program-specific rules for how much income counts.

Do NYC rent stabilization laws apply to 2–4 family homes I might buy in Port Richmond?

• Typically no because stabilization usually applies to buildings with six or more units, but newer tenant protections, including Good Cause Eviction, may still affect lease terms and renewals.

Will I need flood insurance for a 2–4 family near the Staten Island waterfront?

• If the building is in a Special Flood Hazard Area, most lenders require flood insurance, so checking the FEMA map and getting quotes early is important.

What paperwork should I gather before making an offer on a 2–4 family in Staten Island?

• A 2–4 unit preapproval, recent leases and rent rolls, proof of rent receipts, Certificate of Occupancy, HPD/DOB records, and a plan for any required repairs or registrations after closing.