Can I put 5% down on two family home?

8 Replies

Hello, I am looking at a two family home in Essex County NJ.  I am planning on making an offer at $350,000.  I will have a cosigner on the property who will not be living in the home, however I will occupy one of the units and rent out the other unit to a tenant that is already there with a M/M lease for 1500$ per month.  

My question is, is it possible to get approved for an owner ( not cosigner)  occupied multifamily home and only put 5% down?  

I have spoken with only one person regarding this and they have mentioned that I may need to put 10% down to be approved.  

BP, please help! 

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@Chris Cozzens there are different variations of the 203k loan program...if the property didn't need much in repairs (less than $35K I believe) you could get the 'streamline' version of the loan.

Like @Stephanie Irto said, this is an FHA loan and you could put as little as 3.5% down since you're owner occupying it.

I'd look into it and see if it fits your needs!

Hey @Stephanie Irto The loan originator I was speaking with today spoke with an FHA underwriter. I guess since the house is a multifamily and I have a co-signer (non occupying ) that I would need to put 25% down. This doesn't seem right to me, because if I put 25% down, why would i need FHA lol.

Not sure if it makes a difference but i have 760+ credit and my cosigner is 740+