1. What is a Multi Family Loan?

A Multi Family Loan is a mortgage loan secured by a multi-family property, which is a residential property containing more than one housing unit. These loans are used by investors to purchase or refinance apartment buildings and other multi-unit properties.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Property\ Value \) — The total value of the multi-family property (USD)
• \( Down\ Payment \) — The initial payment made when purchasing the property (USD)

Explanation: The loan amount is simply the property value minus whatever down payment the borrower can provide.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps investors determine how much financing they'll need, assess affordability, and plan their investment strategy.

4. Using the Calculator

Tips: Enter the property value and intended down payment in USD. The down payment must be less than the property value.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical down payment for multi-family properties?
A: Down payments typically range from 15% to 35% of the property value, depending on loan type and property size.

Q2: Are multi-family loans different from single-family loans?
A: Yes, they typically have different underwriting standards, interest rates, and down payment requirements.

Q3: What factors affect multi-family loan approval?
A: Lenders consider property location, condition, cash flow, borrower's credit score, and experience.

Q4: Can I live in one unit and rent the others?
A: Yes, this is called house hacking and may qualify you for owner-occupied financing with lower down payments.

Q5: What are common loan terms for multi-family properties?
A: Terms typically range from 5-30 years, with 15-30 years being most common for permanent financing.