Banks only offering commercial loan for Duplex.

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Hello BP have you experienced any trouble financing your multi-family properties with conventional mortgages/loans.  To my understanding thus far is that you could finance conventional MF up to 4 units and anything 5 or above would have to be as a commercial loan. I live in Miami, FL and several banks in the area are only offering the latter because it is a duplex investment property.

The benefits of conventional loans to my understanding are the following:

1. Interest rates are lower

2. 30 year terms = lower monthly payments (commercial loans = shorter terms = higher monthly payments = less cash flow)

3. Lower down payment (commercial loans minimum 25% down payment) 

So my question is have you had luck in finding a bank or lender to finance the purchase of a duplex or multi - family using a conventional mortgage? Is it even possible in Florida?

Caito, the answer is yes. I've never heard of a bank only offering commercial for a multifam less than 4 units. I use GuaranteedRate, and a specific bank I've used is Stifel Bank. If your military you can use your VA loan with 100% financing to include closing costs. Local banks in my opinion have high rates, the advantage is that they also have their own lending guidelines and can overlook a bad credit history, assuming they will carry the loan and not sell it off. In some cases a seller may have two duplexes on one legal lot or have multiple duplexes he wants to sell as a package, in those cases the deal may fall into commercial guidelines. A credit union in my opinion has lower rates than a bank, in either case just call the top 5 of each when you google and you'll find a solution in a day. The only private money I've used was Civic Financial, it was a simple and pleasant experience, the cost goes up but these are transitional loans and the intent is to refinance out within a few months after you fix whatever credit issues you have that is restricting you if that's the case. hope this helps, my thoughts are based off my personal experience and worked for me. Both those lenders deal nationwide.