Financing a duplex - am i being politely declined

[Satha Palani]

Hi,

I have a pending offer on a duplex that is being offered below assessment.  Its currently tenanted and i am buying it together with the leases (1 year term). The house needs work but the type that can be done in bits over time and that will in general increase the rental value. Long story short; its a good deal (assuming i get it at the price i offered). 

I have not heard back form the seller yet (offer went in yesterday), I am pre-approved for a conventional 20% down  mortgage for up to 10K above my offer price.

Today the mortgage agent sent me a note saying that their underwriters requires i show proof of funds to cover the following for multi-family investment properties.

1. 25% of the purchase price as down payment

2. Buyers portion of closing

3. 6 months of loan service

I have 20%, the closing cost and 2 months worth of service. I take on the leases at closing and the rent is 2X the monthly mortgage.

Are these terms normal. Seem somewhat excessive to me. My mother agreed to gift me some money to cover the difference but apparently gifts cannot be applied towards investment properties

Is this normal? or is the broker trying to get rid of me? Can i go elsewhere?

Any and all assistance is appreciated.  

Thanks,

satha