5% down lender on house hack duplex?

[Chris Maurice]

Hey everyone,

I've talked to a few mortgage lenders who are all telling me that it's basically impossible to do a 5% down conventional loan on a primary residence duplex. They are saying that it is not within the guidelines of I believe Freddie Mac, which is going to require 15% down. Alternatively, they are suggesting an FHA option. Is there anyway around this? My goal would be to kick the mortgage insurance off at 80% LTV, which I understand is not an option on an FHA. Additionally, The up front MI required for the FHA is another downside, which would be over $6000 additional cost for the price range of property that I'm searching for.

Further, from the lenders I’ve talked to, JG Wentworth has been the most impressive as far as rate and apparent service. Does anyone have experience good or bad with them?

Thanks!

[Henry Lazerow]

I have "house hack" clients who do a lot of these. It's called Home Possible and you can do 5% down on 2-4 unit properties. There are income limits though for certain area tracts you can check these here by searching the property address http://www.freddiemac.com/homepossible/eligibility...

I am in Chicago and don't know anyone in Tennessee but would recommend searching for a lender who works with investors maybe ask on the BP local forum. On phone ask them how many Home Possible mortgages they have done. It's a pretty common program and any lender who does house hack buyers should know about it. 

Also in regards to your occupancy questions. Yes, you legally need to intend to live there for 1 year from close date and intend to move in within 60 days of close.