First house hack in Miami, Florida

[Luis Sánchez-Abarca Gornals]

Why I should not go with an FHA loan on my first multifamily rental property I'm going to live in?

I have the down payment and closing costs available for a conventional loan, but will be short of reserves. How many months of reserves should I have available when 20% down?

Thanks in advance for your help!

[Raymond J. Rodrigues]

@Luis Sánchez-Abarca Gornals good morning, fellow Miami native and licensed mortgage lender. When going conventional, a 2-unit multifamily requires 15% down payment. Anything 3-4 unit when going conventional requires 25% down. 

In regards to reserves, see below. 

Determining Required Minimum Reserves

Minimum required reserves vary depending on

• the transaction,
• the occupancy status and amortization type of the subject property,
• the number of units in the subject property, 
• and the number of other financed properties the borrower currently owns.
  

If you have any questions, please feel free to reach out.