multi-fam mortgages

[Andrew R.]

Hi, is there a general rule of thumb for comparing a mortgage for a duplex/triplex vs a single fam home for an investment property? Are multi-fam mortgage products available at the same rates and criteria, or are they harder to get and/or higher rates?  Thanks, AR

[Upen Patel]

@Andrew R. If you are looking at conventional financing, then Fannie/Freddie guidelines are what most lenders follow. Some will have more restrictive overlays.

Conventional loans are for 1-4 unit residential properties. Generally, for SFH/TH/Condo its 20% and 2-4 unit is 25%. If you have more then 6 financed properties, then the down payment will go up by 5%.