Can I do conventional loan on multi family with 5 % down

Multi-Family and Apartment Investing
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Can I do conventional loan on multi family with 5 % down

Akash Amin
Rental Property Investor · NJ (nj) · Member since 2019 · 13 posts · 3 votes

I have bought my first real estate investment property. I am looking to invest in 4 plex. I live in nj but I want to invest in Texas. I would like to know if I can get conventional loaf with low down payment for a 4 plex property.

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Todd Dexheimer
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
6y

Expect 15-25%.

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  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    6y

    Expect 15-25%.

    1Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    6y

    @Akash Amin As Todd mention there are no conventional loans for investment with 5% down, we are not back in 2003-2007. As far as in know anyway.

    If you first investment can be refinance perhaps you can pull some equity and use that to put down larger down paymnet.  BUT make sure the numbers still work on the first IP. 

    1Reply
  • John Walter
    New to Real Estate · NJ · Member since 2020 · 124 posts · 63 votes
    6y

    I haven't heard of that ever happening. I've seen anywhere from 15-35% for a MFR as an investment property. Do you have a conventional loan on your other property? Your DTI may make it difficult to get a conventional, depending on when you made that first purchase.

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  • Aaron Barber
    Rental Property Investor · Las Cruces, NM · Member since 2017 · 65 posts · 38 votes
    6y

    Not that I know of unless you house hack it.

    0Reply
  • Stephen J DavisBusiness Member
    Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
    6y

    You could do a hard money loan if you are getting a deep discount on the property and that will reduce your total out of pocket. Call Chris Robicheaux in TX. www.noblemoney.com He can explain how it works.

    1Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    Not with traditional lenders and non owner occupied properties. 

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  • Chris C.
    Raleigh, NC · Member since 2017 · 347 posts · 94 votes
    6y

    not in the current lending market (for conventional)

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  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    @Akash Amin it’s conceivable you could get a bank to accept a subordinated loan as a partial downpayment, keeping your own contribution at 5%, if they keep their own loans. At this point I think you would have to be a preferred client, though. Not sure if it would work with owner occc.

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  • Akash Amin
    OP
    Rental Property Investor · NJ (nj) · Member since 2019 · 13 posts · 3 votes
    6y

    @Aaron Barber yes I think I will do that. My job is wfh. So I can move to Texas and house hack for 1 year

    1Reply
  • Akash Amin
    OP
    Rental Property Investor · NJ (nj) · Member since 2019 · 13 posts · 3 votes
    6y

    @Jonathan R McLaughlin I will just go with FHA. And house hack

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  • Account Closed
    Rental Property Investor · Saint Louis, MO · Member since 2020 · 38 posts · 8 votes
    6y

    @Hadar Orkibi If you are a physician I’ve heard of physician loans for 5% or less down and I don’t know of any stipulation about owner occupying. Can anybody confirm?

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  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    6y

    @Account Closed there are 3.5% for veterans but you need to live at the property. That’s not his case.  

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