Help on type of loan for multi-family property

[Nhia Yang]

I found a combined multi-family property package (3 duplexes) for sale by owner. I'm aware residential loans cover single-family homes up to 4-unit homes, and commercial loans are for 5+ unit homes. My question is, since the owner is selling 3 duplexes (all at the same location), will I need 3 residential loans for each duplex? Can I just get 1 residential loan to cover all 3 properties since they're just 2 units per property? Or, am I required to use a commercial loan for all 3 duplexes (6 units total)? Any advice is greatly appreciated! Thanks, Nhia.

[Roy N.]

@Nhia Yang

Are the three buildings on separate lots or are two, or all three, on a single lot?

If they are on a single lot, you will likely need to finance them under a single {commercial} mortgage.

If each unit is on its own lot, then each could be financed separately, or you may find a lender willing to underwrite them using portfolio lending.