Working on our first deal

[Frank Del Corso]

My wife and I have been enjoying the podcasts and working together on buying our first rental property.  We found a lender that we've pre-qualified with and they have told us we'll need to put down 25%, which is our problem.  We have good income but we don't have enough money available for a 25% down payment + closing + renovations so what do we do?  I'm thinking we should look for another lender but what we don't know is if this is standard for a multi-family traditional mortgage loan or not.  Does anyone have experience with loans for multi-families in PA?

Thanks!

Frank & Jen 

[Michael Belmore]

Hi Frank, 

congrats on your first deal. Lauren is spot on in this one. If you don't mind living in the unit for your primary residence consider getting an FHA loan with 3.5% down. They will cover up to a 4 family and you can roll in rehab cost. I'd consider networking on BP with Agents in your area that are familiar with this transaction, they can guide you to what lender to go through. It's a little more specific so you should have a lender who's familiar with FHA house hacking.

Good luck 

-Mike