Financing 2 Multi's on Same Deed

Can anyone advise on how a lender will view two multi family houses on the same deed? There are 5 total units. Would this be considered a commercial loan?

If they are two separate houses, it is not considered commercial. However, there is the important question of whether they are on the same lot or two separate lots. That determines the amount of work a lender will have to put into the loan and, therefore, might gain you some points.

Todd Menadier
Wall St. Financial
Licensed Mortgage Banker, NJ, NY, CT, FL

They are two seperate houses on the same lot. How would this impact the lenders work load?


Sorry, if they are two separate houses on the same lot for a total of 5 units, it is considered small commercial. Separate lots, would be different. Therefore, you will have trouble finding someone to finance it at rate similar to a 4 unit house. For example, many lenders will easily do 100% financing (0 down) for 4 units. Once you get that fifth, it changes and 80% financing will be a good find.
Where is the property located? If there are no other houses similar to it in the area, it will be very difficult to get comparisons for the appraisal.

That’s a tough one.
Are they town house units?

If so the seller can turn them into condo’s and then you can purchase them without a commercial lender. This will cost couple extra thosand dollar and some time, but it may be worth it.

I found a lender who said we don’t have to go through commercial lending. He is a loan officer at a bank…but all the other lenders I called said it would have to be commercial becuase of the shared lot. I sent this lender my numbers, he asked for the street address which makes me a little uneasy. Can anyone shed some light on why he would need to know the street address? Also, he seemed very impressed with the numbers…should I be concerned about losing a deal to a lender? I have never worked with this guy before, so I don’t know what if anything he can do for us, but his specific questions put me a little on edge.