I have searched and searched and have been unable to find lending information about owner occupied multifamily housing. I have found a 6 unit building that I would like to purchase and occupy one of the units while renting out the other 5. I don't have a whole lot to put down, but have enough income to afford the monthly payments on the entire building without the renters.

Are there programs out there that allow this? I have seen the FHA 3% 4 family program for first time homebuyers (which I am), but it does not appear to allow more than 4 units within the building.

Any help, suggestions, or direction would be greatly appreciated.

Thanks in advance!

-Philip

As far as I know, and I am not a residential lender, the limit in multi-family to get some kind of residential type financing is 4-units. Anything bigger than that requires a commercial loan.

Income producing property loans like those require a 20% down payment on average and are underwritten using rental income as your source of repayment. You can find a good idea of the type of calculations used by going to the page http://www.loanuniverse.com/sensitivity.html

There are a dozen other responses about how to finance rental property scatttered about the site.

Without the downpayment, the only other option is to borrow the additional 20% either in the form of seller financing or another source.

It would be very difficult to find any lender mainstream or otherwise to lend with 97% loan-to-value.

Hope this helps.

Philip,

A 6 unit building would fall under a commercial loan. I know of lenders that do this type of loan.

Chauncey

Philip, We are a comercial lender with extensive experience in multi-family loans. We can do 80% on most multi-family properties if the loan is under 1 million. We can go to 85 and sometimes 90% LTV over 1 million loan amount.

We will look at any type of commercial loan. We have NO minimun and NO Limits on our loan amounts.

Clark Barr
Monarch Financial Services, Inc.
P 843-450-8053
F 843-497-9381