Single Family Vs. Small Multi (2-4 unit) Loans

[Jusstin Williams]

Hi! My name is Jusstin and I'm just starting my real estate journey. So far I have a real estate agent and have been working on getting pre-qualified for a loan so I can get a good idea of what price range to look in. I've contacted 3 lenders so far and have received one pre-qualification (waiting on the other 2). From the first and second lender I'm told that the down payment requirements for SFR and a small multi are different. For instance, I was pre-qualified for $500k with 7% down for a SFR, however if I go with 2 units it's 15% down, and 25% for 3-4 units. One of the other lenders told me something similar for small multi just hasn't given me the actual details yet. Is this typical or should I continue to shop loans?

Ideally I would like to come in somewhere between 3-10% for a conventional loan whether it's a single house or 4 units.

Additional details:

I'm currently located in SoCal in the inland empire and I'm also looking in this area too. This will be owner-occupied however I was told a conventional loan would be best because I have a business (sole proprietorship) that reports a net loss for last year and this will lower my income if I go with a FHA loan. Credit score is between 703-728 or so. Employed with the same place 5 plus years. Have 18k liquid and 45k in stocks, plus receiving another 18k in stock from my job next week.

If this is not typical should I just call lenders in my area and ask them what their loan terms are for the two different types of properties?

Any insight would be greatly appreciated :)

*also it's my first time actually posting so sorry if this has been covered before*

[Elise Marquette]

@Jusstin Williams this is correct. All conventional owner occupied loans require 3-5% down fir a SFH, 15% for a duplex and 25% for 3-4 units. This will not change lender to lender on a conventional loan because all conventional loans have to meet certain requirements in order to be sold on a secondary market as such. FHA allows 3.5% down for 1-4 units.