Investor · Milford, Connecticut (CT) · Member since 2017 · 47 posts · 12 votes
I'm applying for a loan for a deal I'm under contract on: a 4 unit which will be my primary residence. I have had my local bank and a loan officer tell me because it's more than 2 units I have to put 25% down, but REI friends in the area, and another loan officer have told me that on anything under 5 units, if I'm owner-occupying, I should not need that much down. I also own two SFHs in other states--neither is FHA or Vet. benefits, etc. Does anyone know why I have two different sources insisting on 25% down? Is this a CT thing?
Investor · Wallingford, CT · Member since 2014 · 104 posts · 53 votes
7y
Hey Curran,
Congrats on being under contract. You should be able to finance with much less down. Maybe that bank just doesn't offer that product. You should reach out to Carrie. She might be able to help you.
Investor · Wallingford, CT · Member since 2014 · 104 posts · 53 votes
7y
Hey Curran,
Congrats on being under contract. You should be able to finance with much less down. Maybe that bank just doesn't offer that product. You should reach out to Carrie. She might be able to help you.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Curran D Bishop It is probably an issue where the loan officer doesn’t understand that you are owner occupying maybe?
Whatever the reason, you can definitely get a FHA loan with lower down payment options. Clients of mine do this all the time with 3 and 4 unit deals in Connecticut.
If you need referals to a different lender PM me and I will get them to you right away.
Investor · United States · Member since 2015 · 415 posts · 487 votes
7y
@Curran D Bishop I've house hacked 5 times in 6 years and used low down payments for every one. There are at least two options for low down payments if you are owner occupying one of the units. The most well-known is FHA, which is 3.5% down and has very high PMI payments added on that can never be removed.
The other one is the conventional HomePossible loan, 5% down and lower PMI which can be removed when you get to 78% LTV. This is the loan you want. It's a conventional loan, so any lender should be able to do it. You might consider a different lender thought... any investment lender worth their salt should know about both of these loans.
Feel free to send me a private message. I would be happy to chat with you. If you are looking for an FHA loan, you would be able to put 3.5% down based on the information provided.
Lender · Cleveland, OH · Member since 2011 · 587 posts · 435 votes
7y
@Curran D Bishop check out the Homepossible mortgage. I wrote a post about this program specific to The Cleveland market however the same idea applies in CT
Congrats on getting the property under contract! I'd love to hear more about it once you close.
I'm a realtor and live in Fairfield myself and help clients secure residential multi-family properties on FHA loans all the time. If you'd like me to recommend you a couple of the main lenders I work with I'd be more than happy to. They'll go over all of your options and help you get in with way less money down.