20% DP for Multi family

[Joseph Post]

I am looking for lender who will accept 20% DP on a conventional loan. Prospective property is small multifamily 4 units or less. I already own a primary and don't plan on moving into the property. I have tried numerous lenders, banks and credit unions all requiring a 25% DP for multi family. Has anyone else experienced this? any other routes I could take? Ideally like to buy within the next month or before spring. Hoping prices dont jump by spring if I have to save another 5%. Thanks in advance for any advice!!

[John Leake]

I never had much luck in the beginning getting less than 25% down, now that I have been doing it for a few years I was advised if it cashflows and I have 20% down the answer is going to be yes. I'm not sure the dollar amount you are talking that 5% being but getting started is the hardest part. I would keep that amount, the 5% in mind when negotiating. On 500,000 *5% is 25,000 so I would ask for that off when you make an offer. The money ends up being the same out of pocket for you and hopefully that is a viable work around for you! Good Luck