Target purchase amount

[Account Closed]

Hello everyone, today I continued my action plan to find out about how much I can borrow, which will lead me to what kind of multi family to buy. I called my credit union and asked about what they could offer. I came up with $400,000 for a quadplex as a starting number. They told me I could get as low as 3 % down +PMI/insur est $2677 per mo. + they wanted 3 months reserves not including rents I would receive. Which comes to around $20,000. This brings me to my limit which I feel is to much, no cushion. This was they only bank I called, So questions:

1) do I call more lenders to see if better terms? 

2) should I just start with a duplex and consider halving the numbers which I was given?

3) do most banks require 3 months reserve?

Goal is to purchase in May of 16 and live in 1 unit

Sorry so long but thanks for your advice

Jared