for a condo before will probably have a difficult time navigating the tricky waters, so you want to make sure that your lender is prepared. Duplexes, Triplexes and Fourplexes: A “-plex” home is where one building contains multiple homes, each with its own separate entrance. For example, most duplexes look like a large house with two front doors, with each unit of the home occupied by different people. Duplexes, triplexes, and fourplexes are more challenging because if someone is trying to buy one they are likely doing so because they want to make money off the property by renting it to other people. This makes “- plexes ” investment properties, and banks are more stringent in lending on income-producing properties. The good news is that if the buyer plans to live in one of the units, they may be able to get an FHA or a VA loan, and FHA and VA loans are easier to get approved than a commercial loan. If your buyer is looking at a duplex, triplex, or fourplex as both a residence and an investment property, this is a great way to get them approved for the loan. Multi-Family Properties: These properties are where there are more than four units to any one complex. In other words, there is no “ fiveplex ” — once you go over four units, you now have a multi-family property. Obtaining a loan for a multi-family property is vastly more complicated than any of the “-plexes.” This is because a multi- family property needs a commercial loan instead of a residential loan, even if the buyer intends to live on property. The transaction will not be FHA, VA, Fannie Mae, or Freddie Mac. This is a commercial loan and a whole different ball game.
If your buyer is purchasing a multi-family property, make sure
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