FHA Quadplex - Lender Perspective?
right now I am a university student with no debt, college and living expenses paid until May of this year. I am also working a full time career and am able to save all of my income (5k/month with a big bump when i graduate), with about 12k saved

I have a very good credit score (760+) and could get a very good cosigner.

I used to intern in CRE and have wanted to get a quadplex in a high living cost city, in order to fully extend the loan since the limits change based on the cost of the area.

I would love to finance a quadplex in LA towards the upper end of the FHA limit (1.475M). My question is could i find a lender to work with me for 3.5% down. Ive spoken to a lender and they couldnt do more than 2 units as an internal rule.
[{"id": "g1qvi79", "text": "Commercial loans usually require 25%. \n\nYou might be better getting a FHA loan, which is residential, and living in one unit for a year.", "replies": [{"id": "g1qvvvj", "text": "I am trying to get owner occupied FHA loan but I don\u2019t believe just any lender will finance this deal", "replies": [{"id": "g1qwt7d", "text": "Call other lenders. I would expect them to want more savings than you currently have.\n\nEven with a 50k down payment, you'll want more because something will break. \n\nKeep calling. But really you should be looking for the fourplex now. \n\nWith covid it's quite possible that lenders aren't lending as much as before. You may find that they want 20% down.", "replies": [{"id": "g1qwzxz", "text": "ok thanks this exactly what i needed. can get gift for down payment too.", "replies": [], "depth": 4}], "depth": 3}, {"id": "g1zkc06", "text": "FHA is a residential loan.   Although a 4plex is technically multi family - an FHA loan would be through a residential lender, not commercial.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g1qwdt4", "text": "Single family loans are for 1 to 4 units, commercial loans are 5+ units and require at least 25% down in most instances, which is for loans $1MM and above. Banks and credit unions will only lend up to 65% LTV in most cases.", "replies": [], "depth": 1}, {"id": "g1qwi0m", "text": "You definitely can. Just talk to a different lender.", "replies": [{"id": "g1qx3x8", "text": "thanks, if anyone has a lender they want to send some business to feel free", "replies": [], "depth": 2}], "depth": 1}, {"id": "g1r1s1n", "text": "Find a mortgage broker who will shop lenders for you.", "replies": [], "depth": 1}, {"id": "g1rbuiv", "text": "It is possible, and if you can put this together, you'd be in a fantastic position. It will be tough to find a lender though. Most FHA lenders just don't have the connections and experience at that price point and with small multi-family. I would suggest you do as much research as you can, and be prepared for the lender to struggle with it. Most FHA lenders do 98% of their work in the lower ranges of prices with W-2 incomes and single-unit homes. u/aardy is in the bay area, but he seems very knowledgeable and I'd expect him to either be able to handle it, know someone who can, or give you the specific reason it won't work.", "replies": [{"id": "g1sa2ki", "text": "Bay area / socal fha 3.5% down 2-4 offers rarely got accepted before (from like 2015 on), mostly a waste of time. \"I want a $1m 4plex in the hottest market in the world with 3.5% down\" - great, and I wanna win the lottery.\n\nNow that landlords are dumping their rentals with problem tenants, you can get the offer accepted if you want to buy someone else's problem.", "replies": [{"id": "g1xr8fq", "text": "Where do you see things going? I have more experience in commercial but large commercial MF is going strong and a lot of firms are super aggressive thinking MF is invincible. Know a firm deploying $500m into mf property now. \n\nBeen trying to get a 2-4 unit in LA for awhile now and hoping values come down soon so I can do an FHA.", "replies": [{"id": "g1xs6dy", "text": "Lots of cheap fourplexes out there.\n\nOnly thing is, tenants haven't paid rent in 5 months.... that's why it's cheap.", "replies": [{"id": "g1xtd16", "text": "Los Angeles not Louisiana \ud83e\udd75", "replies": [{"id": "g1xtqjw", "text": "Point stands.", "replies": [{"id": "g1xtu9s", "text": "Where are you seeing cheap fourplexes? Properties are trading at 3-3.5% and 20 GRM. That\u2019s beyond \u201ccheap\u201d", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g1ukjlo", "text": "I do not know about other states, but I can speak to Chicago. Any multi-family assets under 3 units such as a 3-flat can qualify for SBA / SBL loans which can reach loan to values in the upward 90%. I\u2019ve seen 3-flats financed in Q2 2020 at an LTV of 90% and rates below 3.75. At the end of the day it\u2019s the buyers balance sheet that is going to seal the deal. Expect 12-month P&amp;I reserves as well.", "replies": [], "depth": 1}, {"id": "g1xtza4", "text": "A friend of mine in LA got his fourplex by going through NACA and owner occupying 1 of the units.   Probably best as a last resort if you can't find a better option, since NACA comes with its own headaches.", "replies": [], "depth": 1}]