What is a multifamily loan?

A multifamily loan finances properties with 2–4 residential units (duplexes, triplexes, and fourplexes). Properties with 5+ units are classified as commercial real estate and require different financing. Multifamily loans can be conventional, FHA, VA, or DSCR.

Can I use rental income to qualify?

Yes. For owner-occupied multifamily properties, lenders typically allow you to count 75% of the market rent from the non-occupied units as qualifying income. This can significantly increase your purchasing power.

What is house hacking?

House hacking is the strategy of purchasing a multifamily property, living in one unit, and renting out the others. The rental income from your tenants can offset, or even fully cover, your mortgage payment, dramatically reducing your housing costs.

Is the down payment higher for a multifamily property?

It depends on occupancy and loan type. For an owner-occupied duplex, FHA loans require as little as 3.5% down. For investment multifamily properties without owner occupancy, conventional loans typically require 15–25% down.

Multifamily Loan | MtgPro.ai

Multifamily Loan

Finance 2-4 unit properties and build lasting wealth

Multifamily loans cover 2-4 unit residential properties (duplexes, triplexes, and fourplexes). Investor multifamily qualifies on the building's rent through our DSCR program, and owner-occupied house-hacks route into FHA or Conventional; the full specs live on those pages.

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Key Advantages

Why Choose a Multifamily?

Here's what sets this loan product apart and who it works best for.

House Hacking Ready

Live in one unit while renting the others; tenant income can offset your mortgage payment.

Strong Cash Flow Potential

Multiple units mean multiple income streams, increasing rental income and overall returns.

Portfolio Building

One loan covers multiple units, which is more efficient than buying single-family properties one at a time.

Appreciating Asset

Multifamily properties tend to hold value well and appreciate over time in strong rental markets.

Eligibility

Qualification Requirements

General guidelines for Multifamily Loan eligibility. Requirements vary by lender and scenario.

Requirement	Guideline
Program Details	Investor multifamily runs through DSCR (see the DSCR page); owner-occupied 2-4 units route into FHA or Conventional

These are general guidelines only. Specific program requirements may vary. Contact us for a personalized review of your scenario.

FAQ

Frequently Asked Questions

Common questions about Multifamily Loan loans.

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West Capital Lending, Inc. is an Equal Housing Lender. We do not discriminate on the basis of race, color, religion, national origin, sex, handicap, or familial status.

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Related Loan Products

Explore other products that may complement your strategy.

DSCR Loan

Qualify on rental income, not your tax returns

Debt Service Coverage Ratio loans let real estate investors qualify based on the property's rental income rather than personal income documentation. Ideal for self-employed investors and those with complex tax situations.

Learn more

FHA Loan

580+ credit. Up to 80% LTV cash out, 97.5% LTV rate and term

FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores or limited down payments. A popular choice for first-time homebuyers.

Learn more

Conventional Loan

680+ credit. Up to 80% LTV cash out, 95% LTV rate and term

Conventional loans conform to Fannie Mae and Freddie Mac guidelines and cover most purchase scenarios, with loan limits up to $766,550 (and higher in high-cost areas).

Learn more