I am going to buy a 4 unit property (residential). However, three units are attached and the fourth is detached (all on the same lot). Will lenders consider this a residential loan?
Generally speaking, 1-4 unit apartment buildings are considered residential properties.
As long as the 4th (seperated unit) is on the same lot, I believe that you will be OK.
Good luck and feel free to contact me for a second opinion.
Regards,
Scott Miller
Yes, they will consider this to be a 4 unit property.
What your appraiser needs to be careful of is that there are other comparable properties being used with a simliar structure.
Also similar properties for rent comparison.
If they can find these properties within a reasonable distance you may have what the lenders call a “white elephant”. Just another name for a very unique property which a larger % of lenders then will not touch.
This will probably go as a 4 unit residential as long as they are on the same lot.
If you are putting money down you might want to look at this loan to reduce your payment and create cash flow. The loan will pay off in 25 year guaranteed.
Ronald Sampson