5% Owner Occupied MF Conventional Loans?

Question

Hi BP Crew,

Can anyone recommend a lender that offers 5% down conventional (not FHA) loans on an owner occupied multifamily property?

Thank You,

Scott

Andy Smith · Answer

Thanks for the mention @Paul De Luca and @Jonathan Klemm. I've sent you a message @Scott M. Fletcher.

Paul De Luca · Answer

@Scott M. Fletcher

I have also worked with A&N and they have offered 5% down conventional in the past & I believe that program is making a comeback soon. As it stands they currently offer a 10% down conventional loan too. But I also do know another lender that offers 5% down for a legal 2-flat.

Upen Patel · Answer

@Scott M. Fletcher Freddie 5% down HomePossible loan is still available, but it very hard to make it work. The program has income limit based on the location of the property. Rental income from the other units counts into this.

Jonathan Klemm · Answer

Hey @Scott M. Fletcher - You need to connect with my main man @Andy Smith.  He works at A&N and they offer some great owner-occupied loan products here in Chicago and around the nation for that matter.

Andrew Postell · Answer

@Scott M. Fletcher ever been to a White Sox game?  A certain lender that is headquartered in Chicago sponsors that field.  But I would always recommend visiting with some local real estate investor groups in your area.  There's usually some good people at those that have used many different lenders and can provide good, first hand, local advise on who to use.  That's my suggestion.

Michael J Scanlon · Answer

If you make less than $84k then home possible

Andrew Postell · Answer

@Corby Goade "HomePath" is technically homes that are owned by Fannie Mae that they are selling directly.  So if they own a MFH and are selling it, then that's it.  Did you mean to reference the "HomePossible" product?  There's also "HomeOne", "HomeReady"....you would think they would make this a little easier to delineate between them.  Anyway, let us know and we can certainly provide the answer.

Corby Goade · Answer

Do MFH quality for Homepath?

John Warren · Answer

@Scott M. Fletcher the 5% home possible still exists, although it can be tough to make work in real life. @Joshua Jones has helped a lot of my clients (and me) over the years, and he would know how this works better than anyone. Other than that, you would be looking at different portfolio lenders, which are great, but they have ever moving guidelines as well.

Corby Goade · Answer

@Andrew Postell Thanks for the clarification, I was typing faster than my brain works. I meant HomePossible. I've done tons of deals with clients of mind to house hack MFH and was not aware of any conventional product that allows less than 20% down regardless of occupancy. Obviously you can do that with FHA, but there are challenges with those loans.

5% Owner Occupied MF Conventional Loans?

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