Any lenders, who can give 1.5M loan on 4plex or 3plex?

[Sarp Ka]

Hey there, I'm researching multi family market in the Bay Area, CA. The market is terrible however if I were to live here long term, it seems like a better idea to buy a multi family and rent out others; than buying a SFH and renting individual rooms.

The problem is, real estate market is crazy expensive here, where starting price is 1.2-1.5M. Ideally I'd target for a property worth 1.6M, and pay 10%. So approximately looking for 1.4-1.5M loan.

I know jumbo loans can go as high as that much, but the problem is they'd be requiring 20% downpayment, which is not something I'd want to do.

Is it possible at this point to get a loan with only 10% downpayment? If so, which lenders would do that?

Thanks

[Chris Mason]

Originally posted by @Sarp Ka:

Hey there, I'm researching multi family market in the Bay Area, CA. The market is terrible however if I were to live here long term, it seems like a better idea to buy a multi family and rent out others; than buying a SFH and renting individual rooms.

The problem is, real estate market is crazy expensive here, where starting price is 1.2-1.5M. Ideally I'd target for a property worth 1.6M, and pay 10%. So approximately looking for 1.4-1.5M loan.

I know jumbo loans can go as high as that much, but the problem is they'd be requiring 20% downpayment, which is not something I'd want to do.

Is it possible at this point to get a loan with only 10% downpayment? If so, which lenders would do that?

Thanks

$1.5m is below the loan limit for a 4-plex in the SF Bay Area, but it's not going to pass the FHA self-sufficiency test unless the listing agent is completely incompetent and you're getting 40% off fair market value (good luck).

Duplexes do not have the FHA self-sufficiency test, that's the sweet spot.