FHA Loan or 20% down on fourplex, first property

[Danny McGreevy]

I am buying my first property, which is a fourplex.  It will be owner-occupied and I will be living in one unit.  

I can afford to put 20% down and get a conventional loan, but should I really be considering an FHA Loan and putting something like 5% down and using the other 15% towards procuring another investment property?

Or, would I be better off putting 20% down on this property and 20% down on my next property if I can afford it?

Is there a financially sound answer to this situation?

Thanks!

[Ryan Thomson]

@Danny McGreevy 

In Colorado Springs triplex and fourplexes don't pass this test and FHA lenders usually require 15-20% down (or whatever it takes to pass the test).

In order to pass the self-sufficiency test, you'll need to prove that 75% of the rental income you're likely to receive will exceed the full monthly mortgage payment. FYI there is no self-sufficiency test for a duplex.

https://www.flcbmtg.com/wp-content/uploads/2021/03/FHA-3-4-Unit-Self-Sufficiency-Worksheet-3-2021.pdf