Multifamily FHA Loan - Down Payment Assistance Program

[Travis Smith]

I am in the beginning stages of purchasing a multifamily home (Duplex/Triplex/Fourplex) in the Dallas/Fort Worth area, and am torn between paying the 3.5% down payment and pulling all of my savings, or utilizing a down payment assistance program so I have a safety cushion for expected/unexpected expenses.

I would love to hear back from the BiggerPockets community on this subject. 

Do you recommend using Down Payment Assistant programs on an FHA or stick with 3.5% down?

What are some things to be cautious about if using a down payment assistance program?

Would a down payment assistance program work for the situation below?

- Purchase a Duplex/Triplex/Fourplex at a maximum value of $375,000 (my price range)

- Live in one unit for at least 12 months and rent the other unit(s) to tenants

- After 18-24 months, explore opportunity to 1031 exchange for a second investment property