2-4 Unit Misconceptions With the Banks

[Stanley E.]

In the last 2 weeks I have spoken with three banks and they all tell me that 2-4 unit multifamily properties are commercial real estate. Every REI book I read say 5 unit multifamily and up is commercial. Why is there this discrepancy? This is an issue when I am trying to get a loan and they are asking for 20% instead of 10% down. Once again, Why the difference in the banks terminology and the books'?

[Anthony Gayden]

The Fannie Mae rules for non-owner occupied 2-4 unit properties requires a higher down payment. I looked all over and was unable to find a bank that would do higher than 80% LTV.