Posted on: 18th Jun, 2009 02:50 pm
A friend and I would like to purchase a multi family property which would serve as a primary residence for my partner and be an investment property for myself. We have been informed from a mortgage broker that FHA has recently begun requiring a 25% down payment for multi family dwellings. Purchase price would be ~$620,000. Can anyone validate that this is accurate? I have searched in vane on the HUD/FHA websites. Thanks in advance.
Hi mdmunroe,
I have not heard of any 25% requirement for FHA loans. What I know is, FHA requires you to put down at least 3.5% at closing for 1-4 unit dwellings. However, if you want to get conventional financing for a multi-family dwelling, the down payment requirement could be as high as 20%.
I have not heard of any 25% requirement for FHA loans. What I know is, FHA requires you to put down at least 3.5% at closing for 1-4 unit dwellings. However, if you want to get conventional financing for a multi-family dwelling, the down payment requirement could be as high as 20%.
For an fha loan on a 2 family property, if you are a co-signor on the loan but do not intend to occupy the property the other party must qualify on their own. The down payment is still only 3.5%. Conventional requirements for a 2 family house is 15% down payment. Good luck. brian
