Confused about loan options on a 14-unit MF

[Jon Schwartz]

Hi everybody!

I'm investigating a 14-unit MF to purchase, and I'm confused about the kinds of loan that are available to me.

The property is a 14-unit MF in a tertiary market for $500k. I have the funds for a 20% down payment, and would easily qualify for a conventional mortgage of this size (on a primary SFR).

Is this a commercial mortgage? Is it possible to get a fixed-rate, 30-year mortgage on the loan? Is 20% acceptable for this kind of purchase? Where should I look for financing (commercial mortgage brokers or national banks or local banks???)?

Thanks so much for any insight!

[Ed Matson]

@Jon Schwartz - Anything 5 units or over is normally subject to a commercial mortgage.  As such finding a 30 year fixed rate mortgage is out of the question unless it comes from private money like owner financing. Common commercial multi family mortgages have terms between 5 and 10 years with amortization schedules from 20-30 years.  Fannie Mae has a small balance loan program with a 15 year fixed and a 30 year amp.  Not sure if this property or you would qualify, but that's the best I've seen for small commercial. Suggest you reach out to a commercial loan broker. They can provide multiple options and save you tons of time. A 20% down payment is pretty light.  Many lenders will require 25%.