Owner Occupied Multifamily Financing with <5% down?

[Matt Rothwell]

I'm looking to buy a duplex to live in. I've been pursuing FHA loans because I'd like to put as little cash down as possible to have money for renovations, maintenance and improvements. However, the fees associated with the FHA loans seriously make my head spin. The consensus, from calling around random lenders, is that while its not illegal to lend on >80% LTV loans for multifamily properties, nobody does it. That seems crazy to me though, like they'd be missing a huge corner of the loan market.

Does anyone know of any banks that will do a ~95% LTV loan on an owner occupied multifamily property in North Carolina (specifically the Raleigh Durham Triangle Area?)

[Shaun Weekes]

I just checked the Fannie and Freddie guides on this and you're looking at 15% down for Fannie and 20% down for Freddie on a 2 unit purchase.

So unless you can find a portfolio lender doing this type of loan you're looking at the next option below. 

FHA at 3.5% down is going to be your best bet. I know the UFMIP is 1.75% ( Up Front Mortgage Insurance Premium ) and your MI payment is going to be 1.35% ( Mortgage Insurance ) but with rates in the mid 3's you're looking at a blended rate of less than 5%

Talk to a tax proffesional and see if you would be able to write off some fees.  Then you're golden.

Let me know if you need help with anything else Sir.