This video will describe the multifamily loan structure and how you can get one using FHA.

Multifamily property or home financing is an excellent option to generate income. Multifamily loans are commonly used by investors to fund multifamily property. The properties include condominiums, townhomes, duplexes, and apartment buildings. The properties are typically between two to four units or commercial-residential properties of five units and up. Most properties with more than five units are deemed to be multi-family commercial real property (MFCR), while any property with less than five units is classified as residential. The requirement to adhere to the maximum loan limit is one of the mortgage underwriting criteria for traditional multifamily financing. 20 percent of purchase cost is a typical down payment with a conventional multifamily loan. The borrowers of multifamily loans will have to have credit scores that are good, cash reserves, rent rolls for the property, and two years of tax returns. They must also be able to lease 90percent of the property in the span of 90 days.


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