Want To Buy A Multi-Family Home? Use This Financing Guide

Modern Luxury apartments (condo)

How to get the financing you need to buy a multi-family home.

If you’re feeling a little entrepreneurial, you might be considering buying a multi-family home. With space for more people to live, you can bring in tenants and earn a significant income for your family.

If this sounds like a fit for you, make sure you review this guide on the difference between financing a multi-family home and a single-family one.

  • The Building: While a single-family home is just what it sounds like—a home for a single family—your mortgage lender will need your multi-family home to be either a duplex, three-unit, or four-unit building.
  • The Buyer: While the mortgage restrictions are fairly similar for individuals who will be buying single-family or multi-family homes they plan to live in, investors will have to undergo a stricter underwriting process. This is because statistically speaking, investors are riskier to finance than owner-occupants.
  • Options: Just like single-family home financing, those who hope to purchase multi-family homes have the choice to choose a Federal Housing Administration (FHA), Department of Veteran Affairs (VA), or conventional loan.
  • Co-Signer: Unlike a mortgage for a single-family home, you can’t have another individual co-sign your multi-family home mortgage unless that person will also be living in the building.
  • Rental Income: You might be able to count your rental income when applying for your mortgage, but in order to do so you’ll need to have signed lease agreements from your future tenants.

Are you interested in purchasing a multi-family home? If so, don’t wait to contact Avis Lending. We can help you get the multi-unit building loan you need to bring your dreams of owning a home and bringing in rental income to life! To learn more about the process and how you can get the financing you need, call our offices in Lahaina, Hawaii or Irvine, California today!

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