You can go FHA and put less down, but you're now stuck with Up Front AND Monthly PMI no matter the down payment. If you put 10% down then you can drop the PMI after 11 years. If you put down less than 10% you are stuck with PMI until you pay off the loan or sell the home.
Great questions and here is the answer.
If you are looking to purchase a 3-4 unti property you will need at least 25% down.There is really no point in doing an FHA loan as that is more your typical loan for is you have little money down. Even if you did put 25% down on an FHA loan you would still have PMI (private mortgage insurance) as this is required by FHA regardless of the amount down as it is a set PMI rate for all FHA mortgages.
Please feel free to conatact me with any additional questions.
I hope this helps!
There are some great answers below. Just one thing to add: FHA is changing their mortgage insurance regulations effective June 3 - so you'll want to get a property identified and have your lender pull an FHA case number prior to that date. Ask your lender about the changes, or contact me to visit with one of my Affinity Partner lenders.
Broker/Owner, CRS, MCNE, E-PRO, GREEN
The Stevens Group
What a good choice to purchase a multi-unit place to occupy. I started out with a duplex many years ago and it was a good decision for me. Since then and more recently the lender rules continue to change as to down payment, interest rates, mortgage insurance, etc. I recommend my best lender who has all the details and is easy to work with. Joe Massey - 303-809-7769. Let me know if there is anything else I can do to help.
Your Castle Realestate
Irontree Real Estate
Denvers 203K Lender
2012 & 2013 5 Star Lender