Salinas, CA · Member since 2015 · 15 posts · 1 vote
My wife and I are looking into buying our first home, hoping to get lucky and possibly find a multifamily home (duplex or triplex) we can afford. However, this was not the plan when we first sought the loan, the plan then was to find a single family home to live in. Loan is still in processing for approval. Should I let the lender know that we are possibly looking to get into a multifamily. Will getting a multifamily (duplex or triplex) change our loan process, or the type of loan at all?
New York City, NY · Member since 2015 · 95 posts · 39 votes
10y
Definitely tell them! Potential income from other units will help you qualify. They may not lend for multi-family. You should look at your agent and loan officer as part of your team, not as adversaries. Be open about everything regarding this transaction. If you trust them they are there to help you. If not, find another loan officer to work with.
New York City, NY · Member since 2015 · 95 posts · 39 votes
10y
Definitely tell them! Potential income from other units will help you qualify. They may not lend for multi-family. You should look at your agent and loan officer as part of your team, not as adversaries. Be open about everything regarding this transaction. If you trust them they are there to help you. If not, find another loan officer to work with.
Property Manager · Murfreesboro, TN · Member since 2015 · 85 posts · 48 votes
10y
From my experience it doesn not change anything. You can buy up to a quad on an FHA. Anything over that would be considered commercial financing. Im not sure if it's just my lender. So, don't take my word on it.
Lansing, MI · Member since 2015 · 301 posts · 149 votes
10y
Up to 4 units is considered for personal loans - 5 or more units has to go commercial. You can use up 75% of the rent income of the units you are not occupying as "your" income in consideration of the loan amount you are approved for.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Guess Tim is the only one who knows what a single family dwelling is!
1-4 is single family and the loan process is the same, be it a single family detached or single family attached. 2-4, rents may be included with your qualifying ratios if units are leased and you have experience, that will vary by the lender.
Usually the issue with attached dwellings is the appraisal, if there are comps. You can get 97% LTV with FHA, but rarely done due to appraisal issues. :)