Is 5% down possible on second home?

[Peter Parisey]

I currently live in a SFH have a conventional mortgage.

My father and I are hoping to team up and purchase a duplex together that we have our eye on.

I will rent out my SH and move into the duplex to get us an owner occupied rate and he will be the co-signer and pay for the down payment.

Our problem is that we cannot find a lender that will provide a loan with less than 20% down. We were hoping to purchase with FHA 3.5% down but have been told it's not possible.

Does anyone know of any lending options that will meet our needs of 5% down or less?

[Nnabuenyi Anigbogu]

Why did they say it was impossible? From what you have said i see no reason you cannot buy an FHA financed property unless you have DTI issues or something else specifically tied to your credit. I have done what you are suggesting and there are no rules against it. You might want to check with other lenders. The main rule is that you can only have one FHA insured mortgage which is not an issue since you dont have one already.

Now if you have DTI issues or other credit issues that is different. Post those and we can see how they may be solved.