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Private Lending & Conventional Mortgage Advice

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Steven Cherry
  • Freehold, NJ
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Down Payment on Owner Occupied Duplex in NJ

Steven Cherry
  • Freehold, NJ
Posted Jan 12 2018, 12:01

Hey all. I am interested in purchasing a duplex in NJ to live in and rent out the other unit. My mortgage broker says that if I want to do a conventional loan, I have to put 20% down. However, when I look on Fannie Mae's website (https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf), it shows a minimum down payment of 15% (85% LTV) for 2-unit conventional loans. I asked my broker about this and he said that no private companies will offer mortgage insurance if it's under 20% down for conventional. Is this all true? I don't understand why Fannie Mae's guidelines would be 15% minimum down for 2-unit, but then it's impossible to get the required mortgage insurance. Can someone please help? Thanks!

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