The good news is that if you plan to live in one of the units, you 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 you are 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 you intend 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 you are purchasing a multi-family property, make sure the loan officer you work with understands multi-family loans and all the requirements one needs to get the loan approved. Otherwise, you’re better off working with someone else — a different lender who knows what they’re doing and knows the ins-and-outs of this complicated type of loan. Mobile Homes: Once again, you’d think mobile homes would be easy, but nope. Mobile and manufactured homes present more complexity in obtaining a mortgage loan because a mobile/ manufactured home will depreciate in value so much faster than a traditional home. This makes the underwriter’s job more difficult as there are a lot more items to check off on the list than there would be for a traditional home.
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