All Forum Posts by: Pat Noyes

@Nicholas Weckstein were you able to get low down payment financing on an owner-occupied (primary residence) 2-4 unit multifamily? I’ve been told by lenders that even if you live in a unit, the down payment must still be 20-25%, even if FHA/FNMA.

@Richard Sherman my lender said that FNMA and Freddie Mac have the guidelines that when the # of units is over 1 the LTV maximum is lower, and therefore the down payment requirement is higher. She said that any loans requiring less than that likely involve private or hard money. So according to her, it isn’t a lending institution specific decision for these types of loans. Please let me know if you have any other guidance in this regard.

Decision... I’m going to start out with a multi family turnkey, potentially as a house hack. Please PM me if you have a turnkey offering in a Cleveland suburb. I’ll look into other investments, like syndication, in the future. Thanks everyone for your input!

@Richard Sherman thank you, it was my impressiin that I could get low down payment owner occupied multi family financing also, so I’ve gone back to them to clarify. Thanks!

@Christopher Foote yes, house hacking was the idea. Thank for the caution and the tips!

@Richard Sherman thanks for that other option. My lender said I have to put down 20-25% on a multi family investment property even if I live in it for a year as my primary residence.

I am looking at one of two options. 1) get a HELOC on my primary residence and use it for a 20-25% down payment on a multi family. OR 2) sell our home and use the proceeds for a) 3.5% FHA or 5% conventional down payment on a primary single family to live in for 1 year then rent out PLUS b) 20-25% down payment on a mult family unit. Thoughts and/or other ideas?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Chingju Hu thank you for your response, I appreciate your input.

@Elliott Elkhoury thank for your input, I appreciate your opinion.