I've excellent credit & have enough for 5-10% downpayment on a multifamily. Everyone I have been asking says that I've to have at least

Asked by Stayathomeinfresno, Fresno, CA Mon Oct 18, 2010

25% True?

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Constantine…, , San Diego, CA
Mon Oct 18, 2010
If you're looking to purchase a 1-4 unit property you should be good to go.
Call me and I can help you through it.
1 vote
Catherine Sa…, Agent, Fresno, CA
Sat Nov 6, 2010
Catherine Sawat...
Fresno, CA
From what I understand, you can buy up to a 4 plex on FHA if you are going to reside in one of the units. This will help you take advantage of the lower rates and you'll live almost free, as your investment will pay your portion of the mortgage payment. The big bonus for you is you can manage your investment and possible realize some tax benefits. Be sure to hire a quality CPA to help you with this typeof purchase and snswer you tax questions! Good luck and let me know if I can be of service.
0 votes
Marc Yu, , San Francisco County, CA
Mon Nov 1, 2010

Your answer both TRUE and FALSE. Like all the other answers, it depends on the number of units the property has. California Department of Real Estate states that any property with 1 - 4 units are considered Residential, and if it is 5 units or higher, than it's considered commercial so it really depends on number of units your multi-family home has.

Now there are a plethora of government programs on loans and insurance backed loans such as FHA. But your best bet is obtain a Fannie Mae home. Typically if it's a 1 to 4 unit home, you qualify for FHA if you plan on living in one of the four units. A Fannie Mae home is a tad different. If there is a Fannie Mae REO home for sale that is a Multi unit property, if it's equal to or less than 4 units, you only need >>>>>3.0%<<<<< with no Mortgage Insurance and no appraisal. If the property is an investment purchase and it's a Fannie Mae home, you will only need 10% down, and again no M.I. and appraisal needed. If it's a property with 5 or more units, than it depends on the lender. Some lender requires 25% down, some as high as 40% down, so it really depends on the lender you're getting the loan from.

There are a slieu of really experienced loan officers and Realtors in this website, you can check out their resume and given them a call. My suggestion is consult with a loan offiicer first and see what all of your options are...

Hope this helps!


Marc Yu
Jonah Marc Properties

(415) 205-0255
0 votes
Joe Almirant…, , 95008
Wed Oct 20, 2010
False. If your income supports the purchase price, you can buy a 2 to 4 unit, multi-family property with as little as 3.5% down. It's important to understand all of your options before moving forward. I'm available for a FREE, no obligation consultation, and I live in Fresno, too. Good Luck! 559-709-5017.
Web Reference:  http://www.loanpackage.net
0 votes
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Oct 18, 2010
The key is how many units (1-4 or over 4), and if you plan to occupy one of the units. If you are, you can do FHA.
0 votes
Melanie Gara…, Agent, Fresno, CA
Mon Oct 18, 2010
you could be fine if you are going to live there, if you are buying as investment you will need 20-25% down
0 votes
Mark Overhol…, Agent, Clovis, CA
Mon Oct 18, 2010
If the building is 5+ units it'll probably be considered a commercial loan and then 25% LTV sounds right. A 1-4 unit building you might be able to get a better ratio.
0 votes
Gregorio Den…, , San Diego, CA
Mon Oct 18, 2010
As long as it will be owner occupied you only need 3.5% down with FHA. If it's an investment property then they are correct.
Web Reference:  http://WeFixRates.Com
0 votes
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