Financing for a small Buffalo Multi-Family

[Todd Ashley]

Howdy! My good friend/business partner and I are finally done being victims of "paralysis by analysis". We plan to partner together to purchase a small multi-family in Buffalo, NY. He would be an occupying borrower and I would be a non-occupying co-borrower. Does anyone have any input/guidance for funding this purchase. Ideally, we would like to work with a local credit union, does anyone have recommendations? What kind of requirements (debt to income, etc.) should we expect to see for a purchase of this nature? Will 10% down cut it? Any input is greatly appreciated. Cheers!        

[Andrew Postell]

@Todd Ashley I can comment on some of these items. For conventional or FHA lending you should expect 25% down for a multi-family unit with a non-occupying co-borrower. You MIGHT get 20% down from a portfolio type of a loan but then you should expect the rate to be about 2 points higher, or a 20 or 15 year term, or an ARM, or maybe even all 3! The DTI will be a little more flexible on a FHA loan than a conventional. I don't know any lenders up there but hopefully this information was helpful.