Multi-Family (Triplex) in Massachusetts - 25% Down Requirement?

Question

Has anyone found a lender that will provide financing at 20% down on a multi-family?(triplex)  I've spoken to a few different banking institutions, some national and some local and all are saying they can't finance below 25% down for multi family.  They can do 20% down on single family though.  I'm under contract and would love to preserve that additional 5% cash...

Ann Bellamy · Answer

Unless they are a regional or national lender, @Georges Arnaout , you need a lender where the property is, not where you are.

Christopher Laws · Answer

Hi Justin,

When I last checked (in January) Webster Bank and First Niagara were doing 20% down for multifamily investment properties in Massachusetts.

Rob Beland · Answer

Justin check out Sage Bank. You can contact Anna Maillet in the Leominster office (Omega Mortgage) but they have offices in all different areas in MA. They have a great reputation for investment property lending. I'm in Leominster by the way...great to see people from MA on here.

https://www.sagebank.com/

Dan Borecki · Answer

@Justin Trudell    Congrats on saving your $10K in capital.     If you were considering living in one of the units you could have possibly done an FHA loan.  I did that for my 3 family in October and only had to put 3.5% down.

Georges A. · Answer

@Justin Trudell  thanks for sharing this info. I have a question and I am not sure if you would know the answer.

I am based in MA and looking to invest  in an investment property outside MA.

Does that mean I have to get the mortgage from the state that the property is based at or would one of the banks you recommended be able to give out these mortgages even if they're based out of state?

Thanks in advance

Justin Trudell · Answer

After two full days of making and returning calls, I found 2 banks willing to loan on 20% down.  First Niagara was willing to do 20% down, but only with an ARM.  Bay State Savings Bank is willing to do a 30 year fixed rate at 20% down with a .625 point increase on the rate...looking to get around 5.125%.  I don't really care about the higher rate as the tenants will (theoretically) be paying the mortgage.  I'm happy because I save 10k in capital!

Thanks Charles Gillis!

Charles Gillis · Answer

Try Bay State Savings Bbank in Worcester, they are a portfolio lender.

Justin Trudell · Answer

the property is in Worcester. I've tried Leominster Credit Union who offers portfolio lending, but still required 25%. I will be making some calls tomorrow to the suggestions mentioned above. I didn't figure I would qualify for portfolio lending since this is my first rental property.

Mike Hurney · Answer

@Brianna S. , yes a local Portfolio Lender is best for Justin.

Multi-Family (Triplex) in Massachusetts - 25% Down Requirement?

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