I'm currently evaluating the idea of withdrawing money from my 401k to purchase a small multi-family property for my primary residence. I would love to speak with anyone who has done this or thought about it themselves.
Also, does anyone have any perspective on debt assumptions or where to even start getting them for a deal under $1.5M? Local bank? Residential Mortgage Broker?
Depends on the market. In my market banks will go conventional at 5% for a SFR or Condo, but for 2-4 units, its going to be more. I was recently soft quoted 15% for 2 units and 25% for 3-4 units. 5+ is a different story.
You can use FHA if its a primary residence and go 5% down, but there are some pretty steep fees and as others have eluded to, PMI for life of loan hurts.
I have received similar feedback to weaksaus . I would be interested if anyone has found non-fha financing for 3-4 units that requires less than 25% down.
10% is fairly common. Check with a resi mortgage broker (not direct lender). They will typically charge an origination fee but its usually worth it for the ease of comparing products and getting a lower rate.
Interesting. I have yet to find such a 10% down payment for 3-4 units. Any chance you have a link to a lender or broker who offers this?
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