Question For Lenders ......Purchase Of Triplexes
Just checking to make sure that Lenders require a larger downpayment (25%) on the purchase of TRIPLEXES.... Is it true that triplexes fall in a different category and require a larger downpayment. I look forward to hearing from you.
The distinction for properties is at 5 units. 5 units and above is considered a commercial loan and, traditionally, requires higher down payment i.e. 25 - 30% down. I am hearing that there are some recent programs that require less down payment.
A triplex represents a residential loan. You can likely find 10% down programs. I bought a fourplex a few years ago and looked at a 10% down program, but eventually wound up with 20% down loan.
I think in depends on your state.
Here is my recent experience:
Big old home in Md. intown location listed as multi-unit currently hair salon and 2 apts. Listing stated could be converted to 3 units or back to big home.
Lender said must be commercial loan; zoned commercial property. Problem getting loan (had applied for resi 3 unit loan.)
County said No Way to converting from commercial property!
Went to local lender who had loan and got 7.5% 5yr. balloon amor. 25yrs. 20% down.
ceinvests,
Your recent experience is a little different situation. Your property is a mixed use property with both residential and commercial use. Mixed use property usually requires a commercial loan.
A triplex, a purely residential property, qualifies for a residential loan.
Yes, I agree, NewKid-
It was the fact that this was a multi-use property that required a commercial loan.