Best loan options for multi

[James Godbout]

Hi all,

I’m looking to buy a multifamily in the boston area and am trying to understand my loan options.

I have bought 2 houses in the past (one sfh in Texas, one multi in Roxbury) but both were via house hacking and with a VA loan.

I'm trying to get a handle on what to expect in terms of interest rates, required LTV, and how the process differs if I use an LLC vs putting it in my name.

Would be happy to chat with any local lenders here or just hear from those who have knowledge on best options for me to pursue financing. 

[Jim Cummings]

@James Godbout. I'm far from the expert on financing, but here's my take on your question.  Certainly consult a experienced lender for more compete advice. 

INTEREST RATES: If you buy in your name expect to get around 3.5% - 4.00% depending upon credit, etc. 

DOWN PAYMENT: If you buy in your name expect to put down about 20% - 25%. generally speaking 25% DP will get you a better interest rate than 20% DP.

LLC: If you buy in an LLC, expect to get a Commercial Loan. Variable Interest rate, DP won't change significantly, but expect to have a 20-Year Amortized Loan that might balloon in 5-10 Years.

Unless you feel strongly about buying in an LLC, buying in your own name will be far more attractive.

Good luck and keep moving forward!