Loan Interest on an Owner-Occupied Multi-Family Home

[Joshua Fann]

In 2017, my family-owned construction and engineering company is looking at building a quadplex. To rent out. These will most likely be a set of four town-homes all connected, about 1200 sq ft each. I am actually thinking about living in one of the units, being the property manager, and using the rent from the other units to make the mortgage payment. My question is, since I would be living in one of the units, would the bank give me a homeowner interest rate (somewhere around 3-4%) or an investor interest rate (5.5-6%)? I know that any structure with four or less units is residential, not commercial, so it is my understanding that since I will be living in one of the units I would get the homeowner interest rate. This is my first attempt at a house hack, so advice is much appreciated!