bank loan on a multi-family unit 5+ units

[Michael Farrugia]

I have a general question about purchasing a multi-family with 5 or more units. I've heard from a few sources that banks will not question your income when looking for a loan on this many units. For example, if I were to find a building with 10 units, and have the capital for 20% down, but cannot show an income, (good credit score and little debt)  will I have a problem finding a bank to loan?

[Jeff Greenberg]

@Michael Farrugia your important numbers are the DCR which is "NET income/debt service" @Jason Monroe It sure would be nice if they would take the gross income.  Everyone could get loans.  Well maybe that isn't a good ideal after all.

The other important numbers are your networth(could be a combination of your team members) equal to or greater than the loan amount, and liquidity equal to 6 to 12 months of debt service or 10% of the loan amount.  This varies with the lender.

The nice thing is, you can bring in other signers if you don't qualify on your own.