Multi SFH per lot vs MFH fiancing and anlaysis

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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    9mo

    Yes, and there is a lot that goes into the up front requirements for processing and approval.  There are specific programs that allow for more than one property or unit on one parcel/lot.  In most cases the bank or lender will not finance if any of the units are manufactured/mobile or moved from another lot/location.

    You also have to consider if either property is "subject to" and require cost to cure or escrow holdback (renovations/repairs). That limits the finance to either HML Hard Money Lender or Fix and Flip program.

    You also have minimum loan amounts that can interfere like under $100K.

    In most cases if you own other real estate or primary home its best to take out cash/cashout refinance and buy these style homes with "All Cash" then do a delayed financing loan to get your 85% LTV cash back or wait 6 months and pull Max out on ARV.

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  • Juan YepesBusiness Member
    Lender · Miami, FL · Member since 2025 · 125 posts · 35 votes
    9mo

    @Jennie Ballard by analysis I assume you are asking if you need to submit two applications. One loan application will be enough. Regarding whether lenders require a loan per SFH or if one loan can can cover all SFH in one lot, I suggest you keep both SFH separate. This way any issues that may arise in the future with one property will not affect the other. Also if in the future you decide to sell only one, you will want to have these properties papered separately to avoid delays and additional costs.

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