Buying both sides of a twin home require two mortgages?

Question

I am currently trying to purchase both sides of a twin home.  Each side of the unit has separate deeds.  Does anyone know whether I will have to get two separate mortgages along with all of the associated closing costs, or can I just do one mortgage (which I would prefer)?

Dylan Earl · Answer

Sounds like you mean a semi-detached? Semi-detached = 1 building/roof, two habitable dwellings, 2 lotsDuplex = 1 building/roof, two habitable dwellings, 1 lot

I've heard from developers here in Ontario, Canada that when you purchase two lots beside each other they automatically amalgamate (depending on the municipality). So if you buy two lots just be aware of that! Could lower your value. I'd recommend purchasing one in trust and the other under a name to be safe... speak to a lawyer about it.

Best of luck!

Stephanie Medellin · Answer

@Bryan Terry  With conventional or government financing, you would need two separate loans if they are two separate properties.  There are many properties that are semi-detached (that's another term that could be used to describe two connected houses).  Just as you would need 2 loans to buy 2 condos that are in the same complex, even if they were right next door, you would need 2 loans in this scenario.

Owner financing or a loan from a friend is a different story; you can make any terms you want.  One loan could be recorded against two parcels.

Blanket loans can also cover more than one property, but they are harder to find and will be more expensive than 2 conventional loans.

George Clark · Answer

@Stephanie Irto I gotcha. Sorry was confused on the exact layout. Thank you

Scott Lewis · Answer

@Bryan Terry

I own one of these. We call it a “split duplex” or basically attached townhouses. Physically it is an ordinary duplex.

Since they are on separate parcels and deeds, they will need to get separate loans for each side. However, if you really really want to, you can file with the county or whatever to have the 2 lots made continuous (I think that was the term) under one owner/parcel, then get one loan. The fee with the county is small.

However, you should keep them separate, the total value of both is higher this way and if you ever get in a rut, you can sell one side.

The insurance company views it as one duplex and insured both sides as one unit, which is much cheaper per unit than my other townhome.

Bryan Terry · Answer

Thanks for the response.  You make a good point about it improving my exit options.

Wayne Brooks · Answer

@Bryan Terry Your closing costs won’t be that much higher any way, probably less than $1,000.  Most of the closing cost would be the same regardless two title searches, title policies, escrows for taxes and insurances, two appraisals, et.  Plus you have better exit options with two mtgs.

Stephanie Medellin · Answer

The original post said the property has two separate deeds.  A 1-4 unit property would only have one deed.

It sounds like two individual single family or 1 unit homes that are attached, not a 2-unit home.

Bryan Terry · Answer

Yes!  You are correct, it is semi-detached.  It sounds like I will have to do two separate conventional loans.  Not ideal, but the numbers still work.  Thanks!

George Clark · Answer

@Stephanie Irto maybe I’m missing the meaning of twin home? Residential home loan is a 1-4 unit single family home. 1 loan. I’ve done it many times. It’s one loan. If want to send address? Unless I’m missing something it’s one loan.

Bryan Terry · Answer

Thanks for your response!  Both sides are owned by a single person now and it is a rental.  I plan to purchase it and rent out both sides also (not a house hack).

Buying both sides of a twin home require two mortgages?

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