Duplex with one deed, one or two loans?

9 Replies

Background: We are currently under contract for a duplex that in 1998 had a deed for each address, but in 2004 has one deed for both addresses. The appraisers office has a shared parent parcel id and then each property also has an individual parcel id. There are separate mailing addresses and MLS numbers.

We prefer to get one loan (reduce interest rate and single set of closing costs) for both properties and our lender said that was an option because of the single deed. The real estate agents (seller and buyer) are in opposition saying they have to remain under two separate contracts because two separate MLS numbers. Even if we concede to do two loans, I fear that further into the process we will have an issue splitting the deed back down to two deeds. Is that a complex, expensive process?

Has anyone had experience with this that can provide some insight?


Go for the single loan if the lender will do that for you.  I would really look into the title report and probably discuss with the title to company to really understand what is going on with it.

To me, it seems it is also in the interest if the seller to have this done as one single transaction, if it is legally possible.

I can see why the real estate agents would want it as 2 separate transactions. It works for them.
But if the seller, the lender and you are happy to do it as one single transaction, then that is what you should be doing.
Ask the agents to correct the information on the MLS. Surely they can do that.

Also, remember that the agents don't dictate the terms of the transaction. They broker the transaction but it is up to the seller and you to agree on the final terms.

That is what I would do if I were in your shoes.

I have no idea how the bank did it (didn't ask), but I just got duplex on one loan. Sounds similar to yours (2 apn, 2 mls, 2 address) and no one said anything (to me at least) about not being able to do one loan. The loan has both address listed ... 

Thank you all.  I get intimidated being a novice,  but these replies give me confidence to speak up!

Matt K.  Did you also make two offers on the property? I think that's where my lender is getting hung up. 

@Karen Kasjaniuk I went through this with the two duplexes I bought in August. One of them was split into two parcels and the bank and realtors were telling me that it would have to become two separate loans. I was able to get the seller to agree to have the county put it on one parcel ID. This lead to one closing and not two and saved me additional agent fees and closing fees. It was a battle for me, but it can be done.

Never seen a “shared” and “individual” PINs in FL. If there were two PINs, then they are separate properties....doesn’t matter if they were bought with one deed (a deed is only the transfer of ownership and can include 100 different properties). You can easily write one contract, specifying how much for each property, and get one loan if you prefer. Getting one loan would have bearing on whether they were able to be separate properties.....two unrelated issues.

Go with what your money guys say. An agent can only assist in facilitating the sale. They shouldn't try to bother you in terms of financing. If the seller is happy, and the bank gives you better terms with one loan, as opposed to two, then the agent should be completely on board.

You should not have to do two different closings if it's not completely necessary.

I recently had the same issue with a VA home loan. If anyone trying to use a VA home loan to purchase a multifamily with individual deeds, please see below:

Per Chapter 12.2 of VA's Lender Handbook:

Multiple Parcels.

More than one parcel or lot may be included as long as all of the property is contiguous and legally marketable. VA does not set a limit on the number of acres that the property may have. If the property being appraised includes more than one parcel, the appraisal must be prepared subject to placing all of the parcels on one deed.