Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated over 7 years ago,
FHA Loan down payment question
Is it possible to get an FHA mortgage on a Fourplex property for 5% or less as a down payment?
Thanks
I think if you're going to owner occupy it may be possible
Hi @Patrick Blackwell - an FHA loan assumes it's owner-occupied, so as long as you live in one of the units as your primary residence, then the down payment for 1-4 units is 3.5% of the purchase price.
Thanks for the response, could you expand on what factors impact this decision, I have been advised 15% is the minimum for a 4 unit and 10% is the minimum for a 2 unit.
They're talking about conventional loans, rather than FHA. On a conventional loan, the minimum Loan-to-Value is:
- 1 Unit 95% (5% down)
- 2 Units 85% (15% down)
- 3 & 4 Units 75% (25% down)
FHA is 3.5% down for 1 through 4 units.
3.50% under FHA and 5% under Home Possible for primary residence. 25% down payment for investment.