Getting a conventional with 5% down?

[Trevor Neale]

I have an Fha 3 plex and I am ready to purchase another 3 or 4 plex but every loaner wants 20-25% down. Any other way I can get a 5% down loan?? Plz help

[Melissa Hartvigsen]

Hello @Trevor Neale,

Conventional loans used to allow 5% down payment on owner occupied property with up to four units. Lending guidelines changed a few years ago and that is no longer an option. 25% down would be required today.

If you have enough equity in your current triplex to refinance to a conventional loan, then you may be able to take out an FHA loan on the new three or four unit so you can do a 3.5% down payment. As far as I know, you can only have one FHA loan at a time.

If refinancing is not an option for you, then you may have to look at private, lending options, and “non-QM” loans. These come with higher interest rates and you will need a broker who can offer you those loan options. You won’t get them at a typical bank or credit union.

Cheers,

Melissa