Can I get a FHA or any QM on 2 duplexes on the same parcel?

Question

A local lender said it is commercial because it's two dwellings even though it is on the same tax parcel. The addresses are labeled A, B, C, D. I've searched and not found a definite answer. Has anyone dealt with this? Looking for real help and not an opinion. Thanks

Jason Wray · Answer

You cannot get a traditional or QM loan when there is more than (1) property on the same parcel. You will need to go DSCR and purchase it as an investment property since its considered commercial. Banks need to ensure that if a home owner defaults on the mortgage they can foreclose and sell the property. You get into litigation and issues when your dealing with multiple properties and occupants.

Commercial is a different lending process and does not have as much legality and guide lines. There are no laws that protect the home owner on commercial properties. The only other way is to have the parcel sub-divided out and buy one as a primary and one as investment.

Greg Henderson · Answer

That's what a local lender is telling me too. I just couldn't believe it. I've listened to hundreds of podcasts, read books, own 19 doors, flipped houses, and I've never once heard anyone mention this. Everyone assumes 2+2 = a quad if it's on the same property.

Michael Behr · Answer

Where is this? I got a similar situation

Peter Mckernan · Answer

Check title, see what the lot is zoned for and then take it to the lender. If it's two duplexes, might be able to DSCR loan possibly.

Darnell Lockett · Answer

Hi @Greg Henderson five or moe units is considered commercial. Unless there’s something I’m missing, the situation described is residential.

Can I get a FHA or any QM on 2 duplexes on the same parcel?

Can I get a FHA or any QM on 2 duplexes on the same parcel?

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