10% conventional loan in NJ

[Carlos Rodrigues]

Good evening BP, I have a few questions and I might need some suggestions. I found a vacant multi-family property from $250K. I had submitted a offer on the property with 5% down FHA. But shortly after the LA told me that the current owner just had tenants sign a lease for all the units starting Feb 1st. The total property rents out for $3650 monthly. Now my issue is I can't purchase the property using FHA because I can't live in the property, please correct me if I'm wrong. Now the only way I can get this property is with a conventional loan. I spoke with a Wells Fargo Loan Officer and he said I'd need 15% down. Now that would be $37,500 + closing costs vs the 5% or $12,500 + closing costs.

My question is, is there a bank in or near Union County NJ that will loan conventional with only 10% down, which would be best for me only having to put down $25,000 + closing.

Also could I put the closing costs in the loan?

Also what would you guys recommend on me doing.

My MAIN GOAL is to get positive cash flow, I currently have housing.

Also another huge huge huge concern is "did the screen the tenants"??!!

Again any ideas or suggestions?

Thank you kindly.

[Peter Tverdov]

You absolutely can live in the property! There is a law in NJ that allows you to evict tenants if you or a relative is moving into one of the units. There is nothing the tenant can do about it. They have two months to leave after you inform them (which in my estimation would be done the day you close). Google it. I actually did this when I bought my first multi-family house hack via FHA loan, they left within a month. So if a bank is telling you no, find a different bank.