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