Multi-family Loan Advice?

[Nicole P.]

Hey there. I’m in the process of getting approved for a loan to buy my first property. I was really hoping to buy a small multi-family property to start with. I was talking to my lender about options today and they told me I would have to put down 20% for a multi-family property. I’ve got great credit so I did get approved for a conventional loan at 3% but that limits me from a multi family property from what I understand. I definitely don’t have 20% saved for a down payment. I wanted to see what kind of experiences y’all have had with getting loans for this type of property and if you’ve had luck with getting loans that require less than 20%. Thanks in advance!

[Stephanie P.]

@Nicole P.

FHA is your best bet based on your description; units, low down payment, first home etc... Home Possible and units means 20% down payment. FHA will allow 3.5% down for up to 4 units. You should consider a 203K for units so you can find a home that will allow you to have the lender pay for the renovoations, usually meaning you're getting the worst house in the best neighborhood when you start and a home you would love to live in in the end.

Best of luck

Stephanie