All Forum Posts by: Jody Ho

Thank you Hai and Lacey. I chatted with residential lenders. Even if this is coming back as 4-plex, the condition will not qualify for conventional loan (it needs some major renovation). They recommended me to start with commercial loan and if the appraisal comes back as 4-plex and renovation is done, I could reconsider residential loan.

I chatted with some residential lenders. Even if the appraisal comes back as 4 units, the current condition would not qualify the property on residential loan.

One of the lender suggested to try appraisal waiver, I checked multifamily is not eligible. So I think I am going with the commercial loan for now.

@Rod Stanback Thank you for your reply. I already pre-approved for commercial loan, but also want to look into residential loan because, technically on paper, this is a 4-plex in county record. I am wondering how lenders decide whether this is a 4-plex or 5-plex.

Also, the condition of the property is not great, not as bad as fixer type. This could be a challenge for residential/conventional loan too.

I am under contract on a multifamily house. The house is marketed as 5-plex (Original owner did the conversion in 1950, with the certificate of occupancy), but most of the things were not fully updated to 5 units. Two units are sharing electrical circuit and panel, water heater, etc. In the county record, this is showed as a 4-plex. I did go to the city to clarify the status, they said it is not uncommon to have this kind of mismatch.

My question is about mortgage/loan on the property. Since 1-4 unit multifamily can use residential loan but 5+ unit will fall into the commercial side. In this particular case, will it qualify for residential loan? What does the bank or appraiser look for to confirm this is a 4-plex or 5-plex?

Thanks in advance

I am under contract on a multifamily house. The house is marketed as 5-plex (Original owner did the conversion in 1950, with the certificate of occupancy), but most of the things were not fully updated to 5 units. Two units are sharing electrical circuit and panel, water heater, etc. In the county record, this is showed as a 4-plex. I did go to the city to clarify the status, they said it is not uncommon to have this kind of mismatch.

My question is about mortgage/loan on the property. Since 1-4 unit multifamily can use residential loan but 5+ unit will fall into the commercial side. In this particular case, will it qualify for residential loan? What does the bank or appraiser look for to confirm this is a 4-plex or 5-plex?

Thanks in advance