Conventional Loan Requirements for 2-Family Homes

[Ramon Ramos]

Hi BP Community,

I am currently in the market to purchase a 2-family home in Hudson County NJ. I have been working with loan officers that have been telling me that I can get a conventional loan with a 5% down payment for a single family home. However, the minimum down payment for a 2-family home is 15%. I was wondering if anyone can shed some light onto why this is the case. 

Thanks,

Ramon

[Harry Arnold]

Hi. Without knowing all the details, I’ll assume you’re structuring it as an owner occupied property (5% down). That being said, the same low down payment should apply for 1-4 units. Again, if I’m missing any details - that may be different. Good luck.