Complete Multi-Family Financing Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Multi-family financing funds properties with multiple units, from a duplex to a small apartment building. In Florida, two-to-four-unit properties let buyers live in one unit and rent the others or build a rental portfolio.
This guide explains the difference between small and large multi-family loans, owner-occupied options, and how rental income helps you qualify. Mortgage Capital, NMLS# 1859012, finances multi-family properties across Florida.
Two-to-four units versus five-plus
Two-to-four-unit properties qualify for residential mortgages, including FHA, VA, and conventional loans. Five or more units is commercial financing with different rules and rates.
Most individual investors focus on two-to-four units because residential loans offer better terms and lower down payments.
Owner-occupied multi-family
If you live in one unit, you can use owner-occupied financing with low down payments, including FHA at 3.5% and VA at zero down. The rental income from the other units helps you qualify.
This is the heart of house hacking, where tenants help cover your mortgage while you live on site.
Using rental income to qualify
Lenders count a portion of the projected or actual rent from the other units toward your income, which boosts how much you can borrow.
On investment-only multi-family, DSCR loans can qualify on the building's total cash flow without your personal income.
Down payment and rates
Owner-occupied two-to-four-unit loans can go as low as 3.5% on FHA. Investment multi-family usually wants 20% to 25% down. Rates run slightly above single-family loans.
Reserves are important, since more units mean more potential vacancy and maintenance.
Florida multi-family considerations
Insurance on multi-family properties, especially older or coastal buildings, can be substantial. Run the cash flow with realistic insurance and vacancy figures.
We help confirm the property and your financing line up before you write an offer.
Complete Multi-Family Financing Guide: step by step
Frequently asked questions
What counts as multi-family financing?
Loans for properties with multiple units. Two-to-four units use residential mortgages; five or more is commercial.
Can I buy a duplex with an FHA loan?
Yes. FHA finances two-to-four-unit properties at 3.5% down if you live in one unit.
Can rental income help me qualify?
Yes. Lenders count a portion of the rent from other units, and DSCR loans qualify on the building's total cash flow.
How much down payment for multi-family?
As low as 3.5% owner-occupied on FHA, or 20% to 25% for investment multi-family.
What is house hacking?
Living in one unit of a two-to-four-unit property while renting the others, using low-down owner-occupied financing.
Are multi-family rates higher?
Slightly above single-family rates, with owner-occupied loans priced better than investment loans.
What about five or more units?
Those need commercial financing with different underwriting, rates, and down payment rules.
Do I need reserves for multi-family?
Usually yes, since more units mean more potential vacancy and maintenance to cover.