Updated over 5 years ago on . Most recent reply
Chicago multi family owner occupied loan options
Hi All!
As a first time home buyer, my wife and I are looking to househack our first property with either a duplex or triplex type building in the Chicagoland area.
Given the cost of property here and the FHA loan limits, it doesn't look FHA is an option. What are the other low down payment loan options for this type of investment in a high cost housing area? On several recent threads it was said that lower down payments (~5%) for conventional loans are tough to come around now.
Any input is super helpful for a potential first time owner occupied house hacker!
Thanks!
Most Popular Reply
I would reach out to @Zack Karp to discuss your lending options. He recommended that my brother and I purchase our first two properties using Freddie Mac Home Possible loans, which is exactly what we ended up doing. It's 5% down conventional financing, though it is difficult to qualify and find a property that meets all the requirements.
According to https://entp.hud.gov/idapp/htm..., the FHA loan limit in the Chicago MSA for a duplex is $471,100 and $569,450 for a triplex. I'm not sure what areas you're targeting in Chicagoland, but you can definitely find 2-3 unit properties for less than those loan amounts. FHA should still be on the table.