Massachusetts Real Estate Q&A Discussion Forum

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Erick Sembrano
  • Rental Property Investor
  • East Boston, MA
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Conventional loan Owner Occupied 2Fam - is low DP ~5% exists?

Erick Sembrano
  • Rental Property Investor
  • East Boston, MA
Posted Dec 29 2021, 05:11

My wife and I are currently looking for our next house hack and searching for a 2 family in the Greater Boston Area and surrounding cities north of Boston, Massachusetts. Previously when we bought our first owner occupied 3 family, we were able to get a conventional loan Low down payment. It was supposed to be 5% DP but the lended has a cap for me at that time on how much we can lend so ended up putting in more cash for the down payment around 7% so still ended up pretty good.  

Currently, the lenders I've reached out to are either recommending to get an FHA for low down payment vs paying 15% down payment for conventional loan. Our FHA offers have not been getting any success and seems like some sellers don't like to deal with it likely due to some potential issues with the property per FHA guidelines (eg paint chipping, etc).

Wondering if the anyone knows if the low downpayment for conventional loan still exists or rules have changed and it's essentially nonexistent at this time. Would also appreciate any recommendations if any knows any lender that can offer this low down payment conventional loan for owner occupied small multifamily. 

Thank you guys! 

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