Buying my first multifamily in Chicago

[Rochelle Fernando]

I am planning on purchasing a 3 to 4 unit multifamily in Chicago and house hack. I am aware of the FHA and the 5% down conventional loan. With the current interest rates and high home prices in Chicago I doubt I can pass the self sufficiency test for FHA. I spoke to one lender and he advised on having 6 month of reserves if I'm using the conventional loan. It is a lot of cash i didn't anticipate. I was working on collecting 5% for down payment and 3% for closing. I am not sure if I should wait to collect 6 months of reserves or buy using a FHA with the current capital I got. Is there any other loans that would fit my situation ?
Please share any tips and advice on getting started! Thanks

[Brie Schmidt]

@Rochelle Fernando - Correct, FHA is nearly impossible to do on 3-4 units on the north side of Chicago. You can still do a 2 unit FHA but 3-4 you will need to do 5% down conventional. Every lender will require 6 months of reserves and it can be in a 401k or retirement account, as the money doesn't need to be liquid. Another hack is if your parents have cash have them add you to the account so you can show your name on the bank statements (for at least 3 months) and then you can use that to fulfil the requirement.