5% Down Requirements for New Conventional Multifamily Investing Option

[Carolyn McBride]

Hi BP,

I've applied for the new 5% down multifamily primary residence loan option for a 3-unit property, but keep getting denied at the Automated Underwriting System (AUS) stage. 

I have good credit (690), 24 months of reserves, and something like 40% DTI... and the lenders I am working with are not sure why the AUS is denying my application with these specs.

I've heard 3-4 unit conventional/primary residence loans are more difficult to achieve with the new low 5% down payment option... I'm wondering if anyone has been successful at closing with this type of loan product and if so, what factors (credit/DTI/reserves, etc) were required for you to be approved? I'd like to understand which factors are weighed most heavily in the underwriting stage so I can try to get approved.