Minimum down for Duplex as primary

[Zaher M.]

Hello,

I have applied to two banks for purchasing a duplex as a primary property (live in one unit and rent the other). I am told that minimum down payment accepted for a duplex as primary is 15%. In order to do only 5% down they told me I have to get a single family house instead. Is this the case for everyone? I feel like something is wrong because I think I heard others got duplex with 5% down. Please let me know if you had similar or different experience.

Thanks!

[Heather Greene]

You can get FHA for 3.5% and some states have special programs that allow 3% or 5% down for first time owners, sometimes even without PMI. That's how I purchased my first duplex. A Fannie Mae conventional will require at lease 15% down, Freddie I think is still at 20% down. Some local portfolio lenders may have programs for a lower down payment. VA also offers 100% financing on duplexes if you're eligible.