FHA 203K loan questions

[Natalia Collini]

Good morning! I'm interested in getting an FHA 203k loan to purchase a 2-4 unit home with. Some of the things I've read online suggest that a bank will only lend you that money for a multiplex if you have some cash reserves on hand. Are the reserves for added expenses to be incurred if the extra units sit vacant or because of extra potential repair costs? What if you're purchasing the property within your budget for a SFH?

I'm also interested in taking advantage of some of the down payment assistance programs here in the area. Would having that DPA possibly offset any reserves that might be needed? 

Any other tips or words of wisdom would be appreciated also. Thanks very much and have a great day! :-)