• By Andrew C, May 19, 2010 @ 2:15 pm Multi-Family Residential

• By Ray, May 21, 2010 @ 3:03 pm This is a tricky situation because it will become your primary residence. However, banks considered residential property when its under 4 units. As this over-exceeds the number of units, you will be dealing with a clo (commercial loan officer) thus be classified as a commercial building. my sources are my old employers .. bofa and wfb.

• By Expert Realtor, May 22, 2010 @ 5:41 pm Commercial….a 4-plex is the max size you can get for residential and one unit must be occupied by you. You’ll need a commercial loan.

• By loanmasterone, May 24, 2010 @ 11:32 am The type property you are describing is called commercial property or commercial residential property. Most lenders would want to know if you have any experience of owning rental properties Are you sure you want to step out that far at this stage of the game? The type property you are describing requires a lot of down payment and then qualifying for a Commercial mortgage. The interest rate would be high and the mortgage note would not be for more than 10-15 years and could be called in 5 years though it could be amortized for 30 years. There is another possible way you can do it. It might take a little time, but then you will gain valuable experience and the qualification and down payment would be a lot different. I suggest you try getting into a 4 unit complex. This type of property is considered as a single family home for the purpose of a real estate mortgage. Therefore the interest rate would be less, you would have to come up with less of a down payment. With you staying in one of the units you still have 3 renters that will assist with the rent. With this type mortgage your mortgage note would be for 30 years,normally at a fixed rate and would be called in 30 years. For the purpose of mortgage finance this is considered an owner occupied property. If you apply for and qualify for a FHA mortgage then for the 4 units you could have only a 3% down payment. Once you do this about 3-4 times you should have enough experience and units to qualify for a larger unit that you might find in your local area. Find a mortgage broker or banker in your local area that can pre-approve you for a mortgage. In order to do this he will have to run a credit check, collect your income proof, and other items necessary to get this pre-approval completed. Once you are pre-approved you might then contact real estate agent through someone that was referred to you or a referral from the mortgage broker. You will then find a 4 unit complex to purchase. Once you have located your 4 unit complex there are a few things still needed to be done by your mortgage broker. An appraisal will be obtained as well as a purchase contract. You should consider joining the Apartment House Association in your local area. This association will assist with the local customs and laws governing renting in your area. They will also be able to assist you with the various forms you will need to be successful in being a landlord. I am speaking of being able to run credit reports on prospective renters, evictions and the forms necessary for this activity. Joining this association might be tax deductible on your federal income tax. There might be points and fees that are tax deductible in obtaining your mortgage. Please check with your tax consultant about matters concerning taxes. I hope this has been of some use to you, good luck. “FIGHT ON”

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