SoCal- Looking for 5% DP Conventional for 4 Unit

[Carlos Cano]

My credit and DTI numbers are good. I was looking at a 4 Unit property in SoCal for $730k. This would be an owner occupied property.

Issue is, my LO is telling me that lenders want 20% DP for a conventional loan. I know I've seen others buy owner occupied multi-units with a 5% DP.

Any recommendations or referrals to a lender I can look into?

I can go FHA but many sellers in the area are requiring cash or conventional loans only.

[Stephanie Medellin]

@Carlos Cano  The 5% down for multi-units is available on an affordable program called Home Possible.  The issue with Home Possible is the income limits.  They are simply not high enough to allow you to qualify for a 730k property.  There used to be certain census tracts with no income limits on this program, so it worked, but that was discontinued a few years ago.

FHA is really the only option for a low/no down payment on 4 units.

 You can also get a gift from a family member for the down payment.