Low Down Payment Options for 2-4 Multifamily Units

[Evelyn V.]

Hi BP, 

I'm currently looking to put a low down payment on my first 2-4 unit primary residence, and I've been pre approved to go with FHA. A lot of the homes I'm interested don't qualify for FHA financing due to their requirements. Is there any other loan options where I can put a low % down? Based off the lenders I've spoken with for a 2-4 unit, the minimum with conventional would be around 15%-25%.

I've found a triplex that is asking for $235k that I don't think will qualify for FHA, but I don't want to take it out of the picture just because I can't afford it.

Thanks!

[Michael Dumler]

@Evelyn V., just a side note, many listing descriptions will state, "property is not FHA eligible", this is often inaccurate and a ploy from the seller/listing agent to receive only cash or conventional offers. While it's true that FHA has tighter restrictions/regulations, many on-market properties will still qualify depending on the condition and circumstance of the home. If the property has been listed for a while then it's worth submitting an FHA offer. I've been surprised to see small multi-families sell via FHA that I thought wouldn't be approved at all. Furthermore, if your investment strategy is to house hack, widen your search criteria to include single-family homes with an in-law suite that can be sourced as either an STR or LTR. This is a great way to acquire a property and presents the least amount of risk as a new landlord. Hope this helps!