1-4 Unit Owner Occupied Financing - 25% Down?

[Jonathan Farber]

Hey all, a friend of mine is looking to do a house-hack on a 3 unit.  She had a call with quicken loans and they told her on an owner-occupied 4-unit, she had to put 25% down.  I haven't done one of these in a while but I did a 4 unit in 2015 and that was not a requirement.  I put under 10% down.  Curious if anyone has experienced this recently?  Also if you have any lenders who can service a quadplex owner-occupied loan with a lower downpayment (5-10%), please shoot me a PM.  Thanks :)

@Brad Farber @Jay Dertzbaugh 

[Kevin Romines]

An FHA loan requires 3.5% down. If the borrower negotiates that the seller pays the closing costs (up to 6% of the purchase as max. allowable) then the only money into the deal is the 3.5% down payment. Quicken loans will only do up to 2 units on FHA. That's a bit ridiculous considering all other lenders will do up to 4 units with 3.5% down payment as is allowed by FHA. I can only assume that they don't want to deal with the Self Sustainability tests on 3-4 units. That test is easily resolved, as the rents on the other 3 units just need to cover the mortgage payment.

See the link below for what they say on their website. 

I would recommend that you go to a Mortgage Lender or a Broker to get this deal done. Quicken obviously chooses not to do these, for what reason I don't know?

I hope this helps?