3% Down Conventional Loan

2 Replies

Found a great duplex in DFW, for $220k but seller insists no FHA financing. My intention was to do either a 3% conventional or 3.5% FHA loan-I have a low cash down payment that I have raised. The lender I was working with said since it's a duplex minimum down payment has to be 15%, plus closing costs that's a stretch. I still want to pursue this deal but with a low down payment option. Is it possible to obtain a 3% down payment for a duplex? Are there any lenders who can consider this deal in DFW area?

Updated 9 months ago

BTW my credit score is average 760

@JayCinta Henry hello!

One thing to note is make sure you get a good inspection! If seller is not allowing a FHA loan that means they think/know it would not pass a FHA appraisal... red flag for me as a buyer. What are they hiding or feel makes the property not qualify?

Two answer your question if you plan on occupying one of the units then you can do 5% down IF you make less than 68k a year. If you make more than that then you would not qualify for the 5% down Freddie Mac program and you are stuck with 15% down.

The place is ready to move into but repainting is due. There's no gutters and grass so rain has bounced back on siding over time and it looks like it could do with a little updating. Roof, water heater are new (2019). And there's a worn out patch on flooring vinyl. Nothing major, just a few things like that and painting the outside will make it look sharp. I am handy and will do these myself (I did a full scale rehab of our first rental). I have very detailed pics. So if that 5% option is something you can make happen please me know