Owner-occupied fourplex financing terms and regulations...

[Stephen G.]

Dear fellow investors,

Need some help with this one....

I just spoke with my mortgage broker regarding financing terms for a fourplex which I plan to occupy (as the owner). It was my hope that I could acquire the property with a 95% LTV conventional mortgage, which would save me a large down-payment requirement and qualify me for even lower interest rates.

At first, she agreed that this could absolutely be done. However, she decided (to her credit) to do a quick search of the mortgage regs just to be certain. Here is what she came up with:

• Owner occupied single units (SFH) could be purchased with a 95% LTV
• Owner occupied doubles required an 85% LTV
• AND owner occupied three and four unit properties required a 25% down-payment (minimum)...

Though this is slightly discouraging, she admitted that these regulations seemed rather stringent and said she would do more research and get back to me in the next few days. I'm hoping that she'll find another product that would allow this purchase to go through with a 95% LTV - or maybe I'm dreaming???

So, I'm open to any suggestions or recommendations on mortgage products that would allow me to purchase this property as an owner occupant with a 95% LTV. I'd even settle for an FHA mortgage if need be (since the property is in immaculate condition).

Any suggestions?

Or are the regs that she referred to the new norm in the wake of the housing bust???

Thanks for the help as it is greatly appreciated!