Multi-Family Financing

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    Purchasing a multifamily home can be an excellent way to earn passive monthly income, expand your investment portfolio, and build equity in a stable asset.


    What is a Multifamily Home?

    A multifamily home is a building that contains multiple residential units, such as a townhouse or apartment complex. Multifamily homes hold several different tenants or owners.


    What are the Benefits of Purchasing or Investing in Multifamily Homes?

    Although purchasing the property may be costly up-front, there are many benefits to buying or investing in a multifamily home.

    Generate Steady Cash Flow
    You may rent out the unoccupied units in the property to generate additional monthly rental income.

    Expand your Investment Portfolio
    When purchasing a multifamily property, you obtain one mortgage for the entire complex. Thus, you can expand upon your investment portfolio faster while only getting one mortgage.

    Live in the Property
    You may choose to live in the property you are buying and rent out the neighboring units to tenants. Living closer to your investment units and tenants may help make the property management process more manageable, primarily if you do not rely on a property manager.

    Focus on Improving the Property’s Value
    Over time, you can do minor improvements and renovations to add more value and naturally drive up the demand and rental price.

    What are the Multifamily Mortgage Loan Requirements?

    If you are purchasing a multifamily property with up to 4 residential units, the mortgage process is like that for a single-family purchase. On the other hand, if the property has over 5 units, you must apply for a commercial real estate loan. The loan requirements may also vary depending on whether you are purchasing the property as an investment or for personal use. Typically, lenders like to see the borrower meet some of the following criteria:

    Higher Down Payment
    The lender may require a higher down payment for multifamily financing because there is more associated risk.

    Higher Credit Score
    The lender may require you to have a higher credit score and review your credit history to determine how you may handle more debt in the future.

    Contact us to connect with one of our mortgage specialists to learn more about our multifamily financing programs and the loan requirements.


    The Benefit of Working with GuardHill for your Multifamily Financing

    GuardHill has extensive knowledge in helping our clients secure multifamily financing for small and large properties. We also strive to guide and advise our clients on best practices related to expanding upon their investment property portfolios.