I have been talking to a few lenders and banks trying to get approved to buy a 2-4 unit complex as an owner occupant.  Can anyone shed some insight or advice on this subject. My understanding was that I could purchase a 2-4 unit as an owner occupant with 5-10% down.

This is what one of the lenders sent me:

Here are the FNMA-Fannie Mae guidelines for multi-unit properties

Purchase as Primary residence: this would be you.

• 2 unit: 15% Down
• 3-4 unit: 25% Down

***Even though this is going to be your primary residence, FNMA still requires the larger down payment.

***The other thing FNMA requires is 6 Mortgage reserves. These are additional funds in the bank to 6 months of mortgage payments after closing.

$300k x 25% = $75k + Funds needed to close + 6 months mortgage reserves…this is not an option for you at this time

Also, to offset the total monthly mortgage payment, there would need to be a current lease for each unit and only 75% of that monthly lease amount can be used. FNMA figures a 25% vacancy factor on all leases.

If you were to purchase a 2-4 unit as an Investment property, not lived in by you, this would require 25% Down.