15% down on a multifamily?

[John Samuelson]

I just got a 4 plex under contract for 89k in St. Louis. Had this financing lined up where told me they could do up to 75% (or 15% down), however when I actually got all the paper work ran through they will only do 85% down on multi family. A few other banks I have talked to have all told me the same thing, 25% down for multi families. I have good credit 800 and a great w2 job with 2 other investment properties (in a different state).

Should I just accept the 25% down, or will a conventional bank even offer a 15% down? I can afford it... just would rather put the extra money into the next deal. 

Thanks! 

[Omar Khan]

Originally posted by @John Samuelson:

I just got a 4 plex under contract for 89k in St. Louis. Had this financing lined up where told me they could do up to 75% (or 15% down), however when I actually got all the paper work ran through they will only do 85% down on multi family. A few other banks I have talked to have all told me the same thing, 25% down for multi families. I have good credit 800 and a great w2 job with 2 other investment properties (in a different state).

Should I just accept the 25% down, or will a conventional bank even offer a 15% down? I can afford it... just would rather put the extra money into the next deal. 

Thanks! 

Your lender is correct. You're not buying retail/SFRs. Anything above a SFR and you're veering in the 20-25% territory because they start being considered as investment properties.

Think about it this way: Why would a family live in a 4-plex (all 4 units)? They won't. Hence, the majority of buyers will, most likely, be investors.