I'm searching to get pre-approved for a 3-unit home that I will owner occupy. Called Quicken loans- they told me they can only offer an FHA with 25% down. They only offer 3.5% down for a 2-unit properties. Can someone help direct me to lenders who will give me a loan for an owner occupied 3-unit property with somewhere around 5% down? Thank you!
Hi Nikki, I was just looking to do the same thing. I was looking to purchase a triplex and house hack. I was told by 3 different banks (Wells Fargo/Guaranteedrate/Commerce home mortgage) that with a duplex you can do FHA 3.5% down, but you need to add mortgage insurance to that and a few other restrictions. Or I could go with a conventional loan by putting down 20%(owner occupied) or 25% (investment property). Those were my only options with the lenders bc its a 3-4 unit. If you were to look at a duplex you could get away with 10% down as long as you occupy. However, the 10% option was not available on the 3-4 unit size. Hope this helps a little bit. I'm new to this myself and I'm sure others will have more valuable info for you.
sorry I meant to say that you can do the 3.5% fha with a 'triplex' + PMI (mortgage insurance)
Hi Tiffanie! Thanks for the reply! I actually just got in touch with Loan Depot and they offered me an FHA 3.5% down for a 3-unit! FHA guidelines include 2-4 unit properties. I'd try them, they were so quick and helpful! I already have a pre-qualification letter, just submitting more information for a pre-approval!
You can do 3.5% down FHA. 25% down is required for multi-families if you use a co-signer.