If you are looking to finance aÂ 2-4 UnitÂ Multifamily Property, it is important to know some of the qualifications needed before taking the next steps into financing your property.
Multifamily Property Qualifications
Conventional mortgages for multifamily can only finance properties between 2-4 units andÂ usuallyÂ doesnâ€™t offer financing for renovation or rehab of the building.Â That said, it is important to haveÂ the unitsÂ in good condition prior to financing.
These conventional mortgages are mostly long-term with terms between 15-30 years. Buyers will need a personal credit score of 680+ and Debt Service Coverage Ratio (DSCR) of 1.25, representing the amount of cash flow available to cover debt payments, and the cash reserves requirements are typically 6-12 months.
If you want to know more about Multifamily Mortgages and how to finance your next property, please contact us.