Requirements for 95 Conventional Mortgage

[Mary Baccellieri]

Is anyone aware of the requirements for most lenders for 95 conventional mortgages (5% down payment)? I know not all lenders are equal and have different rules but just wanted to get a general idea.

I have an FHA mortgage on a fourplex (currently live in it also) but now I'm looking to buy a duplex or triplex to live in (while keeping my fourplex and renting out the apartment I live in now). I spoke with one lender so far and they told me I would have to put at least 10% down.

***[I want to be able to get a 95 loan without having to refinance my current mortgage into a conventional- not enough equity in the house to get rid of PMI so I would rather wait it out]

[John Warren]

@Mary Baccellieri there is so much misinformation out there about the 5% down conventional because the guidelines were changed last year. It will be very, very hard for you to use this loan on a 2-4 unit in today's world because your income has to be below 67k and they scrutinize your situation so carefully. To put it in perspective, clients of mine here in the Chicago market closed using this loan on over half the 25 deals I did as a buy side agent in 2019. In 2020, I have had zero of these close. Instead, everyone has pivoted to using the FHA mortgage and if they have one they work on refinancing out of it so they can use it again.