Cash requirement for small multi family

[Brad S.]

Wondering what are downpayment and reserve requirements for small mutifamily these days. I spoke to a credit union and they said 25% down and approx 10% in reserve as a liquid asset (saving or CD). Ideally (assuming) I have 250K that I would like to borrow 2 million and show my 401/IRA funds for reserve, is this scenario possible or is the bank right? Thanks for any insight and any financial institutions you might know of that offer more flexible terms. The only reason I want to leverage more is so I can afford to buy in B neighborhood instead of a C or D, would you agree that make sense?

[Todd Dexheimer]

You could use the IRA for the down payment if you change it to a self directed IRA or take the penalty. I doubt most banks would allow the IRA to be your 10% liquid. You will have the best luck with flexibility from local banks near the property. Also a 20% down payment is common for a stable B class property. The other thing you can do is ask the seller to finance 10% or so. Just be sure to talk to local banks first about if that is acceptable for them. You may end up calling 50 banks to get what you want.