5 Unit multifamily Inquiry

[Garrett Favier]

Hello BP Community!!

Current investor with residential deals and have an opportunity to move forward with a 5 Unit Property that I plan to move into as a primary residence. I am looking to leverage my primary residence for a lower down payment and live in one unit for the minimum period my loan requires before making my unit a rental (renting out the other 4 during that period).

I am looking for advice on the Loan type I will need as I have read and received different information from banks on the unit total that makes it a residential vs commercial loan.

1 – will a 5 unit be eligible for a residential loan?

2 – If not, is there any advantage to making this a primary residence if it is a commercial loan/what is the typical down payment % for a 5 unit?

3- any other advice for this first smaller multifamily in my portfolio would be much appreciated!

[Brian Garrett]

No this will not qualify for a residential loan since it's 5 units.

Residential is considered anything from 1-4 units and anything 5+ is considered commercial.

You should expect anywhere from 20-30% for a down payment on a 5 unit building.