Financing & rates for small multifamily

[James T.]

Hi BP,

I'm in the LA area looking for my first property and plan to house hack a small multifamily. I'm curious to hear what others have seen as far as financing for 2-4 units? When I got pre-qualified for a loan, when rates on places like bankrate.com were showing ~4.5%, we were quoted the higher end of 5.25 because rates are a little higher than SFR's. I know rates dropped recently and the number I'm quoted now is ~4.75%. I was also told that triplex and quadplexes may require a 25% down. I will be owner occupying this unit, so I thought that financing would be a little more favorable. I looked into an FHA loan but with MIP and a higher mortgage, there's no way anything will cashflow in the LA market with such a small down payment. Thanks in advance for your input!