Finding a mortgage for less than 10% down

[Corbin Lane]

I'm trying to find financing for a 2-4 unit house hack and I seem to keep getting the same answer back from lenders - to come back when I have at least 10% of the purchase price. I was hoping to put 3.5% or, at most, 5%. Is that kind of financing just not happening right now or have I been asking the wrong lenders?

[Andrew Freed]

@Corbin Lane - To your point, the best option would be to raise the purchase price by, lets say $10,000, and request a seller credit. Then your out of pocket cash would be dramatically lower. The below table gives a nice visual of this concept. Otherwise you are correct, FHA loans do have high origination costs that bump up the 3.5% down payment requirement.