Where can I find loans for multi family units at 5-10% down? I'm a first time invester with good credit and have a 4-plex I would really like to make on offer on...

You need to speak with an investor savvy lender...you are talking to a robot in a cubicle at those big companies...find a local lender who knows the strategies.

If you are willing to be an owner occupant you can certainly find that. 4 units and under is a residential loan, not a commercial loan, so there are FHA, VA etc programs available. Homepath loans are available for some Fannie Mae foreclosures, both owner occ and investors- look at homepath.com, you'll find properties as well as links to the financing details. I'd call a few banks and/or mortgage brokers in your area and what they can do for you also

@Andy Luck ...it's 3.5%...and you are going to be stuck with MIP for the entire loan. I would save 5% and go conventional and at least PMI will drop off at 78%.

...also, watch out on the FHA...the MIP (mortgage insurance protection) it stays on the loan forever, never drops off...that's going to effect your cash flow.

Does anyone every think there will be a day when investors stop calling a 4-plex a multi-family property? That's what complicates the financing issues, looking in the wrong area. Owner occupied attached single family dwellings are in the same loan programs as single family, the down payment for 4 will be 25%, it's been a very long time since I've seen 5% down on a duplex, 10% I'd guess would be the minimum any mortgage banker would take on, mortgage banker meaning wholesale secondary market. To simplify, we call them duplex, triplex and four-plexs all being single family under HUD and lending constraints, multi-family begins at 5 units and up. As James pointed out, it needs to cash flow after you move out. You need to stay in there at least one year for the owner occupied status.

@Aaron Montague - I thought they had straight 10% investor loans, but a quick google showed all the references to that being older, like from 2011, so I guess it's changed. Here's something more current that's a bit greek to me but seems to say 10% down for an investment SFR, 20% for a duplex and 25% for 3-4 OR if you have more than four mortgages. It looks like the 5% still works for owner occupied multis though...

The lowest non-owner occupied rates I've heard of were 15%. These were by bank in Ohio doing deals only in Ohio. I have no concrete proof of these numbers, but there have been whispers. Inexpensive ways into multi family deals. All are owner occupied. 0% Down: NACA (https://www.naca.com) VA Loan (http://benefits.va.gov/HOMELOANS/index.asp) 3.5% Down VHA (http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home) 3.5% AND Renovations VHA 203k loan (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou)

If you can live in one of the units, you should qualify for the 203k loan program.....just find a lender in your area that offers it. You'll do 3% down and can include repairs in the loan....best loan program ever for an investor/occupier. Happy Investing!

@James Mudd thanks for sharing the insight about FHA PMI. It will go away if you refinance out of an FHA loan though, correct? Perhaps when you have 20% equity?

its a tri level house with the main floor kitchen, then it has another kitchen on bottom level and a third in apartment above garage. We were hoping to use apartment for my husband's office. It's in Catoosa County GA. Its zoned as single family I believe but appraiser said due to kitchens we would need the 25% down which for us is impossible. And our intentions for it don't play into the equation at all. I'm super upset, it looks like there is no way around it.

Can I get a multi-family unit loan for 5-10% down?Can I get a multi-family unit loan for 5-10% down?

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Can I get a multi-family unit loan for 5-10% down?

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