House Hacking Change Lending Terms?

[David Eiges]

I'm looking to purchase a 2-4 unit multifamily. My understanding is that for a SFR, 20% down payment and for MFR its 25% down payment.

I was having an informal conversation with a lender yesterday and he mentioned that house-hacking can provide the benefit of more favorable lending terms, but I didn't get the full details...I'm seeking insight as to whether purchasing a MFR as a personal residence (house hacking) can allow a smaller down payment (20%) or more favorable interest rates than if purchasing a MFR and renting out all units.

[Omar Ismael]

This is the best way to start investing in rental properties. If you are a first time home owner u can get a four unit with a FHA loan where u only have to put 3.5% down . You will have to stay in one of the units for at lease a year , but the great thing about this is you will the income from the 3 other units to hel pay down your expenses on that property