Down payment for Homestyle rehab loan house hack?

[Byron W.]

I'm about to close on my first deal on a 3 unit in Chicago FHA financing and am looking for lending options for my next deal. The Homestyle loan seems like a good choice as I'd like to find a deal, rehab the property and live in it.

My main question is, what dictates the down payment amount? I've seen mixed reports of anywhere between 5% down and 35%. Can anyone help clear up how I can determine where in this range I would fall? This would be my second deal that I would purchase sometime next year after I've lived in my new FHA financed property for the minimum amount of time. And I'd like to purchase another 2-4 unit property with the Homestyle loan. Any help is appreciated. Thanks!

[Michael Facchini]

Hey Byron, Homestyle requires 15% down on a 2unit and 25% down on a 3-4. As a top rehab lender in the country, I can confirm that is exactly what is required. 5% on Homestyle is only allowed if it's a single family, townhome, or condo.

All of the above is for a primary residence, and the percentages noted are against the total of acquisition plus rehab costs put together. Any other questions, feel free to email.